Bitcoin (BTC) is currently trading at approximately $91,700, representing a nearly 2% decline over the past 24 hours. However, the cryptocurrency has experienced a 4% increase over the past week. The market is increasingly focusing on supply dynamics rather than short-term price fluctuations, noting a significant decrease in the number of coins held on exchanges despite prices hovering around the $92,000 mark.
The percentage of Bitcoin available on exchanges has fallen to around 13.7%, marking the lowest levels observed since 2018. Recent on-chain data indicates that Binance now holds only 3.2% of the total supply. This trend, as reported by CryptosRus, appears to be part of a longer-term movement rather than a fleeting change. Diminished inflows suggest that holders are not gearing up to sell, contributing to the ongoing scarcity.
Recent netflow charts further support this notion, demonstrating consistent outflows in recent weeks. Notably, significant amounts of BTC transferred off exchanges were recorded on December 22 and January 5, indicating that buyers are likely moving their assets into cold storage or long-term wallets. Throughout the recent price surge toward $95,000, exchange inflows remained subdued, reinforcing the idea that many holders are not inclined to sell, even at elevated price levels.
Additionally, there has been ongoing discussion regarding long-term holder supply data. An analyst identified a potential issue related to Coinbase“s wallet migration that occurred in November. The analyst pointed out that this migration could be misinterpreted as a decrease in long-term holder supply, which might not accurately reflect the actual movements of long-term holders. If the claim that over 500,000 BTC should be factored into long-term supply figures holds true, current estimates may significantly underrepresent the amount of BTC held off exchanges.
As Bitcoin experiences increased volatility, the price has fluctuated around $93,000 after briefly dipping below $91,500. Traders are closely monitoring key price levels, with Lennaert Snyder highlighting $93,800 and $96,500 as critical thresholds. He cautioned that a failure to maintain support at $91,200 could lead to further downside. Meanwhile, Michaël van de Poppe noted that the price remains above the 21-day moving average, suggesting that if this level holds, there is potential for upward momentum. The $100,000 mark continues to loom large as a target if market conditions remain favorable and supply constraints persist.
