BTC’s price has experienced a sharp rise in the last two years. The spike in price was largely due to its record-breaking demand and limited supply on the leading exchanges. Glassnode’s recent on-chain analysis report mentioned that Huobi and Gemini have seen a drop in BTC supply over the past few months.
There were exceptions. There have been some exceptions. Since March 2020, BTC balances have jumped on Bittrex and Bittrex. The above mentioned digital exchanges have seen combined BTC inflows exceeding 200,000 coins since July 2021.
“Huobi is the most significant overall decline. It has fallen from more than 400k BTC in March 2020 to 12.3k BTC now. This balance decline is more than half due to the Chinese ban on Bitcoin mining and additional restrictions on investor activity in May 2018.” Glassnode highlighted.
Digital exchanges, apart from Bittrex, FTX, Bitfinex and Binance, have seen outflows totaling 253k bitcoins since July 2021.
BTC Exchange Supply Impact
The exchange supply of Bitcoin has had a significant impact on its price in the past. The price eventually rose due to a decrease in Bitcoin supply at prominent exchanges. A surge in supply provided sellers with more options.
Price Action
BTC has seen several market corrections over the past 24 months. The crypto asset currently is in one of its most difficult phases due to geopolitical concerns and economic concerns. The digital asset fell below $40,000.
While Bitcoin is consolidating below the critical $40k mark, rising oil prices have created greater fear about out-of-control inflation. This could impact global markets. GlobalBlock analyst Marcus Sotiriou said that many economists now anticipate stagflation. This is a dangerous combination of high inflation and low growth.
