The recent milestone in the cryptocurrency world is the decrease in Bitcoin supply on exchanges. Data from Santiment revealed that on June 12, the supply of Bitcoin on exchanges dropped to its lowest level since December 2021, with around 942 thousand coins available.
In light of this development, analysts from the platform also pointed out the resurgence of two major players in the market following a recent price drop. According to the analysis, Ethereum (ETH) and Tether (USDT) are making a strong comeback, hinting at a potential bullish trend for these tokens.
With Bitcoin’s supply on exchanges hitting a low not seen since December 2021 (~942K coins), and Ethereum and Tether making a return, the overall risk of a market downturn for cryptocurrencies is reduced. This is primarily due to the limited availability of Bitcoin for sale.
Furthermore, the volume of exchange-traded funds (ETFs) linked to Bitcoin has recently surged, signaling a potentially positive trend for the Bitcoin price. Despite a recent pullback in the broader cryptocurrency market, with Bitcoin dropping below $67,000, the increased ETF volume has sparked a recovery in the asset’s price.
Santiment analysts noted on June 11 that the spot Bitcoin ETF volume hit a peak not seen since May 15, suggesting a possible price rally. This surge in volume often leads to price fluctuations, with the latest increase likely prompting a reaction from buyers. The observation of major entities’ balances by Glassnode also reveals interesting insights, with these entities holding approximately 4.23 million BTC, accounting for 27% of the global circulating supply.
As of the latest data, Bitcoin was trading at US$67,913.01, marking a 2.1% increase in the past 24 hours. However, it is essential to note that investing or trading in cryptocurrencies carries a risk of financial loss, and the opinions expressed in this article are for informational purposes only.
In other news, there are speculations about China potentially lifting its ban on Bitcoin, while the current bear market has seen Bitcoin dropping below $67,000 ahead of key developments scheduled for this week.