Bitcoin on the Move? Exchange Balances Drop $10 Billion in 2024

A significant exodus of Bitcoin is underway, with nearly $10 billion worth leaving crypto exchanges since the launch of US spot Bitcoin exchange-traded funds (ETFs) in January.

Data from Glassnode, a crypto analytics firm, reveals a decline of over 136,000 BTC (Bitcoin) on exchanges since January 11th. This trend suggests investors are moving their Bitcoin holdings off exchanges, potentially indicating a long-term bullish outlook.

As of March 28th, major exchanges hold a combined 2,320,458 BTC – the lowest level since April 2018. This sharp decrease further emphasizes the ongoing trend of Bitcoin leaving exchanges. Withdrawals seem to be accelerating, with Glassnode reporting the third-largest daily outflow (over 22,000 BTC) of 2024 on March 27th alone.

Meanwhile, J.A. Maartunn, an analyst at CryptoQuant, observed a massive transfer of the stablecoin USD Coin (USDC) to Coinbase, the largest US crypto exchange. This inbound transfer marks the largest of its kind historically. This event, while potentially signaling increased buying pressure, requires further observation.

Market analysts are increasingly discussing the long-term impact of US Bitcoin ETFs on the available supply and price of Bitcoin. The upcoming Bitcoin halving event in mid-April, which cuts the number of new Bitcoins generated per block in half, is expected to further tighten supply.

Experts predict a major “supply squeeze” in the coming months, where demand exceeds the available Bitcoin for sale. The combined buying power of ETFs and the halving event is projected to be far greater than the daily supply of new Bitcoins unlocked by miners.

Charles Edwards, founder of Capriole Investments, a Bitcoin investment firm, emphasizes this point:

“The biggest Halving in Bitcoin’s history is just days away,” he wrote. “For the first time, Bitcoin will become harder than gold, with half its supply growth rate. Pent up institutional demand, a supply squeeze from the Halving, and Bitcoin’s growing reputation as a scarce asset – there’s a lot to look forward to in April.”

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Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial or investment advice. Cryptocurrency investments are subject to market risks, and individuals should seek professional advice before making any investment decisions.

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