At the end of July, the amount of Bitcoin (BTC) held by major cryptocurrency exchanges reached its lowest level since late May 2019. At that point, the price of Bitcoin was around $ 8,000 before reaching its 2019 high of $ 12,967 on July 11, 2019.
About 10% of Bitcoin is held by crypto exchanges
The Bitcoin account balance of the major exchanges dropped significantly since mid-March 2020 after the collapse of Black Thursday on March 12 and the subsequent recovery.
According to the data from Glass knotAs of July 29, the market analysis resource was 2.64 million BTC spread across the exchanges. Meanwhile, Bitcoin’s price continues to climb, and recently hit a yearly high of $ 11,400.
Bitcoin balances on exchanges in exchange for Bitcoin price. Source: Glassnode
Lower sales pressure and higher tether sales
In addition, the market analysis company, Arcane research, he showed that the drop in balances on the stock exchanges indicates this Users are more interested in keeping their Bitcoin long-termand withdraw their money from the exchanges to control their own private keys.
This trend leads to less selling pressure from BTC holders. And it comes just two months after the 2020 halving, which halved the amount of freshly mined Bitcoin.
Along with the recent surge in tether currency flows (USDT), which peaked yesterday in 2020, and a total supply of more than $ 10 billion now The amount of digital dollars waiting to be used to buy BTC is greater than ever.
Institutional and retail interest rates are returning to Bitcoin
The leading cryptocurrency has become increasingly attractive due to its value reserve attributes versus US dollar inflation. With another COVID-19 stimulus package on the way and an apparently overheated stock market Many traders are now looking for the security of hard assets like gold and increasingly in Bitcoin.
Institutional interest in Bitcoin in particular appears to be recovering at the speed of light. since both Bakkt and CME futures recorded record volumes in terms of volume and open interest on two consecutive days. Also, Grayscale Another billion was added to its funds in just eleven days, bringing the total AUM for the entire product family to over $ 5.1 billion
CME and Bakkt Bitcoin futures – total open interest and volume. Source: Skew.com
Even for retail, records were broken when Deribit, the main exchange for Bitcoin options, On July 27, the company had a record volume of $ 527 million in Bitcoin options traded.
So, Crypto Asset may finally be ready for another big bull market cycleAs the supply of Bitcoin on the stock exchanges decreases and at the same time the interest of retail and institutions seems to be increasing.
This coincidence of bullish factors triggered numerous bullish forecasts from industry experts Some even predict that this new uptrend cycle could be much larger this time.
“The next Bitcoin bull run will be dramatically different”Said the founder of Twins, Cameron Winklevosson July 29th.
“Today there is exponentially more capital, human capital, infrastructure and high-quality projects than in 2017. Not to mention the very real inflation spectrum with which all trust regimes will be confronted in the future. Seat belt! “