Since the involvement of exchange-traded funds (ETFs) in the US, Bitcoin worth 10 billion dollars has been withdrawn from cryptocurrency exchanges. According to Glassnode’s data, over 136,000 BTC has been observed since January 11. This indicates a decrease in Bitcoin reserves on exchanges.
Current Situation of BTC and Exchanges
Although Bitcoin ETFs have been traded for only three months, 9.5 billion dollars worth of BTC has been withdrawn from major exchanges in the US. According to Coinbase data on March 28, the amount of Bitcoin in exchanges has hit the lowest level since 2018. Glassnode data also indicates that large-scale money withdrawal transactions continue.
Approaching Bitcoin Halving
The presence of Bitcoin ETFs continues to be a subject of discussion regarding their long-term impact on BTC supply and price. The potential tightening in supply is expected to be felt within the next six months to a year. The impact would exceed the daily amount of new Bitcoins released by miners.
With the upcoming halving event in mid-April, the newly released amount of Bitcoin will decrease further. Bitcoin’s supply growth rate will surpass that of gold reserves, and it will become the scarcest asset in the world. Charles Edwards, founder of Capriole Investments, also voices these expectations.
In short, due to the impact of ETFs, large amounts of Bitcoin are being withdrawn from exchanges, and with the approaching halving event, Bitcoin supply will tighten further, leading to high expectations in the market.
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