Bitcoin Supply on Centralized Exchanges Reaches Six-Year Low
A recent report from CryptoQuant reveals that the supply of Bitcoin on centralized exchanges has reached its lowest level in six years. This indicates that investors are holding onto their assets and are not intending to sell them anytime soon.
Bitcoin (BTC) May Surpass $50,000, According to CryptoQuant
A member of the CryptoQuant community shared that the supply of Bitcoin on centralized exchanges is back to 2017 levels. Additionally, a CryptoQuant report suggests that Bitcoin might experience a significant price increase in the $50,000 — $53,000 range at the beginning of 2024.
Short-Term Correction Possible
Despite the bullish signals, caution is advised. The report highlights that 86% of the circulating supply of Bitcoin is currently in a profitable state, and funding rates are at a premium. This indicates a potential short-term correction in the market.
Bitcoin’s Stable Support and Critical Zones
According to Ali Martinez, Global Head of News at BeInCrypto, Bitcoin has stable support at $42,700. If this support level is breached, the next critical zone to watch is $38,000. However, if Bitcoin continues its bullish trend from $42,700, it may reach the next major supply zone at $47,300.
Hot Take: Bitcoin Supply Decreases on Exchanges as Investors HODL
The decreasing supply of Bitcoin on centralized exchanges suggests that investors are confident in holding onto their assets. This could be seen as a bullish signal for the cryptocurrency market. However, caution is advised due to factors such as high profitability and funding rates. It remains to be seen whether Bitcoin will surpass the $50,000 mark and continue its upward trajectory.
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