365Crypto
Bitcoin is on fire! The price has shot up over 10% in the last week, now crossing $67,000. Everyone’s talking about it, and the Coinmarketcap Fear and Greed Index is showing “greed,” meaning there’s a lot of buying going on right now.
Why Are Fewer Bitcoins Available on Exchanges?
Lately, fewer and fewer Bitcoins are being held on exchanges. In fact, the amount of BTC on exchanges just hit its lowest point in five years—only 2.6 million BTC left, down from 3.05 million at the start of 2024. Crypto expert Ali Martinez shared these numbers, and it’s clear that a lot of Bitcoin has been pulled off exchanges.
What’s Causing This?
There are a few key reasons:
- Big Investors Are Buying: Institutional players are buying Bitcoin like crazy, especially with Spot Bitcoin ETFs gaining popularity. These ETFs are now among the biggest Bitcoin holders.
- Long-Term Holders Are HODLing: A lot of long-term Bitcoin fans are buying and holding, moving their BTC into safer places off exchanges. Even during price dips, they’re still accumulating.
Since January, 450,000 BTC have been withdrawn from exchanges, bringing the total down to 2.6 million—the lowest level since early 2019. When this happens, it often means Bitcoin’s price could go up because there’s less to sell.
What Could Happen to the Price?
With fewer Bitcoins available on exchanges and more people holding onto their BTC, there’s less pressure to sell. This, combined with increasing demand, usually means prices could continue to rise. People are holding onto their Bitcoin because they expect the price to keep climbing in the near future.
