The entire crypto space is monitoring the fluctuation of Bitcoin supply with a keen eye. As the largest digital asset, the supply of Bitcoin will always have an impact on the market.
Since the beginning of this year, the supply of Bitcoin on exchanges like Binance and Coinbase have been somewhat low. So there is less Bitcoin to be sold, and the price has a lesser risk of going down.
Thus, we can see from the monthly timeframe that its ratio of supply in exchanges has hit a 6-month low – between January and June ending.
What Is The Implication of This?
Some traders might be curious about what this Bitcoin 6-month low might mean on the general market.
It posits a lower likelihood of bigger selloffs. If major selloffs happen, the price of coins always go down drastically. However, the low supply ration on the exchanges imply the risk is relatively less at the moment.
Analysts like Ivan on Tech have also speculated that institutions that invested in Bitcoin will expect the market to stabilize more before they might want to selloff and breakeven.
Therefore, both individuals and institutions with Bitcoins will want to hold for more time – at least, till the market recovers. The more they do this, the more the supply will be limited.