Analysts believe this trend of low Bitcoin exchange supply aligns with bullish market conditions as more BTC moves into long-term storage or institutional custody.
Bitcoin is consolidating near $87,500, with a key resistance level at $89,000. Analysts suggest a breakout above this level could pave the way for a rally toward $100,000 and beyond.
As the Bitcoin price consolidates around $87,500, the BTC supply on the exchange has sunk to a seven-year low, hinting at a major supply crunch that could drive the price higher. As per the blockchain analytics firm Santiment, Bitcoin’s ratio of supply to exchanges has dropped as low as 7.53%, which is the lowest since February 2018.
Why Bitcoin Exchange Supply Drop Is Bullish for BTC
Santiment further reported that this drop in the exchange supply hints at reduced short-term sell pressure. It also noted that BTC that move off exchanges often go to cold storage, which shows the investors’ intent to hold for the long term instead of liqui
