Bitcoin Reclaims $70,000 Price as Supply Shrinks
25 Mar, 2024 ● Coin news
Bitcoin surpassed the $70,000 threshold on March 25, as a resurgence in Bitcoin accumulation led to the lowest amount of Bitcoin available on the Coinbase cryptocurrency exchange in nine years.
The cryptocurrency hit the $70,000 mark again at 4:47 pm UTC on March 25, marking the first occasion since March 15, as per CoinMarketCap.
From the perspective of supply, Bitcoin holdings on Coinbase dwindled to a nine-year minimum of 344,856 BTC by March 18, indicating a renewed interest in accumulating Bitcoin away from exchanges.
Coinbase had last seen Bitcoin reserves at comparable levels back in 2015, Glassnode, a data analytics firm, revealed.
Moreover, Glassnode’s statistics also highlight that the volume of Bitcoin held in accumulation addresses has climbed to above 3.2 million BTC, approaching an all-time high.
Accumulation addresses are defined by having more than 10 BTC without any outgoing transfers and no connections to centralized trading platforms or mining operations.
Adding to evidence of the trend toward accumulation, Bitcoin transfers to accumulation addresses reached a record-setting 25,300 BTC on March 22, as mentioned in a CryptoQuant post by IT Tech, a verified author.
This indicates that major investors are possibly forecasting further growth following a recent 15%-20% reduction from the peak price of about $74,000.
Overall, the quantity of Bitcoin stored across all trading platforms fell to a three-year low of 1.92 million BTC on March 25, CryptoQuant data showed.
This suggests that with the supply of Bitcoin on exchanges being at an unprecedented low and significant inflows into exchange-traded funds (ETFs), the price of Bitcoin might have the potential for further increases.
Sources:
https://cointelegraph.com/news/btc-accumulation-restarted-coinbase-btc-supply-9-year-low
https://coinmarketcap.com/currencies/bitcoin/
https://studio.glassnode.com/metrics?a=BTC&m=distribution.BalanceExchanges
https://studio.glassnode.com/metrics?a=BTC&m=addresses.AccumulationBalance&zoom=all
