The Bitcoin (BTC) supply on centralized cryptocurrency exchanges has continued to shrink in the past few months, as expected. Recent positive events worldwide have triggered the mass accumulation of the flagship coin. For instance, the recent fourth Bitcoin halving has reduced the coin’s annual inflation below 2 percent.
Additionally, the approval of several spot Bitcoin exchange-traded funds (ETFs) in various jurisdictions has accumulated more than 1 million coins, accounting for about 5 percent of the total supply. On Wednesday, Fidelity’s FBTC led US spot Bitcoin ETFs with $50.6 million in cash inflows, thus a net cash inflow of about $100.8 million.
Bitcoin Whales Take Advantage of Market Dips
According to on-chain data analysis provided by Santiment, Bitcoin’s supply on exchanges has dropped to multi-year lows of about 942k coins. This notable decline has coincided with increased regulatory clarity around the world, thus onboarding more institutional investors.
For instance, Brazil’s largest bank, Itau Unibanco, launched crypto trading to all customers on Wednesday.
Meanwhile, CryptoQuant’s data revealed that more than 20k Bitcoins moved to addresses associated with crypto whales in the past few days following heightened volatility.
The prospects of United States interest rate cuts later this year, fueled by upcoming elections and similar moves by the European Central Bank (ECB) and Bank of Canada, have increased overall crypto-bullish sentiments.
Midterm Price Targets
Bitcoin’s price has ranged below $72k and above $61k in the past four months without a clear breakout. According to a popular crypto analyst alias Captain Faibik, the price must consistently close above $72k to secure a rally toward $90k in the near term.