Bitcoin Supply Shrinks as Institutional Buying Grows
Bitcoin's circulation on centralized exchanges has reached its lowest level since December 2021 - there are 942,000 coins, which are valued at about $64 billion, as per Santiment's data from on-chain.
The drop coincided with the upsurge in demand triggered by institutional investors.
In the meantime, the supplies of Ethereum (ETH) and Tether (USDT) on the market have been increasing, which indicates that selling may occur. The influx of stablecoins, however, indicates strong buying sentiment despite the high levels of volatility.
Cryptocurrency whales have, in the last 2 days, accumulated more than 20,000 Bitcoins, thus, influencing the market and affecting leveraged traders.
$BTC: Are whales still buying?
“More than 20,000 #Bitcoin flow to whale wallets. It appears that the whales took advantage of yesterday’s correction in Bitcoin and accumulated additional quantities.” – By @abramchart
Read more 👇https://t.co/OAXOA5uBFz pic.twitter.com/KUDnP6BVyb
— CryptoQuant.com (@cryptoquant_com) June 12, 2024
El Salvador continues its daily purchase of 1 Bitcoin and mining activities, driving its reserves to over 5,779 coins. Bitcoin has been trading in the price range from $61,000 to $72,000 over the last four months while its dominance is still at 55.62% since the beginning of the year.
READ MORE: MicroStrategy Plans $500 Million Bitcoin Purchase Amid Bullish Sentiment
Captain Faibik, a leading crypto analyst, pointed out that in Bitcoin’s daily chart, there is a descending broadening wedge being formed, which indicates the need for the perspective of closing consistently above the $72,000 resistance level to see an upward movement.
$BTC Descending Broadening Wedge on the Daily Timeframe Chart is Still in Play.
Bitcoin bulls need to clear the $71.3k Resistance to confirm the breakout.
Once the wedge breakout happens, the bulls’ party will start. 🔥📈#Crypto #Bitcoin #BTC pic.twitter.com/uqsQGVcEaH
— Captain Faibik (@CryptoFaibik) June 13, 2024
The intense whale accumulaction indicates potential targets between $80,000 and $86,800.
Increased institutional adoption suggests greater liquidity for altcoins, potentially setting the stage for a robust altseason. The recent approval of Ethereum ETFs in the US and Hong Kong hints at broader altcoin market access for investors in the near future.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
