Bitcoin’s recent price action has been bearish, but on-chain data suggests that some major players might be taking advantage of the dip. Data from Santiment reveals a significant decrease in Bitcoin’s exchange supply, with 40,000 BTC (worth $2.4 billion) leaving exchanges in the past 48 hours. This surge in exchange outflows has pushed the total Bitcoin supply on exchanges down to 1.9 million, a yearly low according to Trading Heights.
Analysts are speculating about the impact of this decreasing supply. Cryptoquant suggests that reduced selling pressure could lead to a bullish market if demand continues to grow. However, Coinglass data shows that 2.38 million BTC are still available on exchanges, meaning there is still significant liquidity. CryptoSlate lead analyst James Van Straten cautions against relying solely on exchange balance as a metric.
While the recent inflow and outflow data suggest increased activity, analysts are cautious about drawing definitive conclusions. The influence of Bitcoin as an institutional asset class is expected to be discussed at Benzinga’s upcoming Future of Digital Assets event on November 19.
