Highlights:
- Bitcoin supply reserves have hit a six-year low despite the unimpressive market trends.
- A market expert asserted that the declining supply reserves signify faith in Bitcoin’s expansion potential.
- IntoTheBlock data, showing negative netflow and positive metrics, supported the expert’s bullish BTC prediction.
Amid the market turbulence that has made investors rethink their investment choices, an analyst has cited reasons for market participants to remain bullish. In a new tweet, Ash Crypto drew over 1.1 million followers’ attention to the declining Bitcoin supply reserves. In addition, he also mentioned why the current trend is spewing a bullish potential for the flagship cryptocurrency.
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Bitcoin Supply Reserve Concerning Declines
According to Ash Crypto, the Bitcoin supply reserve is on a downhill trajectory, culminating in dropping to a six-year low. Part of his tweet read thus, “Bitcoin supply reserve in all exchanges continues to decline and is now at its lowest level since 2018.”
Interestingly, Ash Crypto noted that the declines in Bitcoin supply reserve became more prominent in early 2024. Consequently, it implies institutions are showing massive interest in Bitcoin despite instabilities recorded within the year. Per Ash Crypto, the growing interest signifies that those accumulating the tokens are positive about the market’s future trajectory. In summary, the analyst’s submission aims to bring followers’ attention to Bitcoin’s embedded bullish potential.
BITCOIN SUPPLY RESERVE IN ALL EXCHANGES CONTINUES TO DECLINE AND IS NOW AT ITS LOWEST LEVEL SINCE 2018.
A SIGNIFICANT DECREASE IN SUPPLY HAS BEEN OBSERVED SINCE THE BEGINNING OF THIS YEAR. THIS MEANS THAT INSTITUTIONS ARE ACCUMULATING BITCOIN, LIKELY BECAUSE THEY HAVE A… pic.twitter.com/fvIHeIHptG
— Ash Crypto (@Ashcryptoreal) August 12, 2024
Bitcoin Nears Price Stabilization Above $60,000
As the crypto market continues to shake off losses of the past few weeks, Bitcoin is replicating a similar trend. At the time of writing, Bitcoin is changing hands at about $59,900, reflecting a 1.3% decline in the past 24 hours. Despite the drop, BTC’s minimum and maximum prices within the same time frame ranged between $57,814.74 and $60,650.90, respectively. Therefore, it corroborates initial claims about Bitcoin aiming to stabilize above $60,000.
In its 7-day-to-date price change, BTC witnessed an 11.5% upswing, signifying a marked recovery from its previous slump that touched $49,000. In its 24-hour trading volume, Bitcoin’s variable has soared by a whopping 97.28%, bringing its valuation to about $33.56 billion. With its $1.19 trillion market capitalization, Bitcoin’s dominance remained around 57%. Hence, it implies that BTC took the front foot in the price recovery journey while altcoins have since lagged.
IntoTheBlock BTC Data Aligns with Ash Crypto’s Bullish Outlook
According to Bitcoin’s IntoTheBlock data, the token’s total exchange netflow was negative, with a $105.27 million valuation. A negative netflow signifies that more tokens are leaving exchanges than those entering. Therefore, it indicates more buying than selling actions. Aside from the positive signs emanating from Bitcoin’s netflow, other variables showed positive signs.
For instance, “Holders Making Money at Current Price” statistics revealed that 82% are making gains. 4% are neither losing nor gaining, while only 13% are losing. Concentration by large holders was 12%, while transactions exceeding $100K in the past seven days were worth over $100 billion. For “Holders’ Composition by Time Held” data, 71% are long-term BTC owners with more than a year of owning BTC. 24% have held on to the token for less than a year but more than a year, while 5% owned BTC for less than a month.
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