Exchange supply metrics track the portion of circulating Bitcoin held in wallets associated with centralized exchanges. Currently, approximately 1.15 million BTC is held on exchanges, representing just 5.74% of the total supply. In comparison, past market cycles show that before similar declines, exchange balances had exceeded 3 million BTC. This highlights the potential for a supply shock.

Liquidity Shrinks, Price Movements Intensify

As exchange balances drop, the number of coins immediately available in the market decreases. Actually, when coins move to private wallets or cold storage, supply tightens and price movements can become sharper. Order book depth diminishes; even relatively small buy or sell orders can move the market more aggressively.

Cryptoquant data shows that exchange reserves decreased from over 3.2 million BTC in 2024 to around 2.73 million BTC by March 2026. The market price is roughly $70,500, providing a clear comparison between supply and market value over multiple cycles.

Key exchange balances and percentages:

• Total BTC: ~21 million

• BTC on exchanges: ~1.15 million

• Exchange-held percentage: 5.74%

• Early 2024 exchange reserves: 3.2 million BTC

• March 2026 exchange reserves: 2.73 million BTC

Scarcity Dynamics and Long-Term Holding Trend

So, the drop in exchange reserves shows the long-term holding trend accelerating. Liquidity is decreasing, and the market is more sensitive. Even though over 20 million coins have been mined, the fact that less than 5% remain on exchanges strengthens scarcity dynamics. Supply tightens, and if demand rises, price impact grows larger.

Question: Why are Bitcoin exchange balances dropping and how does it affect prices?
Answer: As exchange reserves fall, fewer coins are immediately sellable. This makes price movements sharper during demand surges. Long-term holding strengthens, and scarcity increasingly impacts Bitcoin’s valuation.

Also, you can freely share your thoughts and comments about the topic in the comment section. Additionally, please follow us on our Telegram, YouTube and Twitter channels for the latest news and updates.

The post Bitcoin Supply on Exchanges Hits November 2017 Levels appeared first on Coin Engineer.

Bitcoin Hits Record on Coinbase 

On Sunday morning, Bitcoin surpassed $125,700 on according to TradingView, setting a new record. The previous peak was $124,500 on August 14. BTC had dropped 13.5% by September 1 but showed a strong recovery last week. Nova Dius CEO Nate Geraci commented: 

“Bitcoin has reached an all-time high, and most people still don’t fully understand what Bitcoin is.” 

Analyst Rekt Capital added:

“If Bitcoin convincingly breaks $126,500, the price could accelerate much higher.” 

Exchange Bitcoin Reserves at Six-Year Low 

Glassnode reports that total BTC held on centralized exchanges fell to 2.83 million on Saturday, the lowest in six years. CryptoQuant shows total exchange reserves at 2.45 million BTC, a seven-year low. 

Over the past two weeks, more than 114,000 BTC have left exchanges, valued at over $14 billion. This indicates holders plan to keep their coins long-term rather than sell. VanEck Digital Assets Research Head Matthew Sigel noted, “The outflow of Bitcoin from exchanges signals significant scarcity,” urging investors to remain cautious. 

Institutional Funds and Long-Term Goals 

Most of the BTC leaving exchanges is going to institutional funds, digital asset treasuries, or individual wallets. This reduces available supply in the market and can drive prices higher. Bitcoin’s long-term rally is supported by declining exchange reserves and rising institutional demand. Analysts note this trend could also affect altcoins and other crypto assets. 

Factors Supporting Bitcoin’s Rally: 

• Over 114,000 BTC leaving centralized exchanges 
• Rising interest from institutional investors 
• Long-term holding strategies 
• Reduced available supply 
• New price peak above $125K 

You can also freely share your thoughts and comments about the topic in the comment section. Additionally, don’t forget to follow us on our Telegram, YouTube, and Twitter channels for the latest news and updates.

The post Bitcoin Supply on Exchanges Drops! What’s Driving the Rally? appeared first on Coin Engineer.

Reports like U.S. Unemployment Claims, PPI, and Retail Sales influenced major investors’ decisions. CryptoQuant analyst JA Maartunn noted that whales monitored rising prices and adjusted positions. These movements signal changes in market sentiment. Meanwhile, Bitcoin’s short-term price reacts directly to whale activity. 

Bitcoin reached a new all-time high of $124,474 before dropping 3.5% in the last 24 hours. This decline shows whales adjusted their positions. Long-term holders remain firmly committed. The HODLer Net Position Change metric indicates reduced selling pressure. This trend supports Bitcoin’s price stability and potential recovery. 

Bitcoin Support Levels and Potential Scenarios 

Bitcoin currently trades around $119,000, maintaining a critical support level. Recovering the $120,000 mark could push the price toward $122,000. However, increased selling pressure may drop Bitcoin below $117,261. A deeper decline could pull prices to $115,000, testing short-term market stability. As long-term holders maintain their positions, the probability of recovery rises. The recent ATH followed by a correction reflects normal market fluctuations. 

The BTC transferred to Binance offers crucial insights for market observers. Additionally, long-term HODLer behavior limits selling pressure. Meanwhile, investors continue monitoring economic data’s market impact. Ultimately, whale movements and long-term holder commitment play a key role in shaping Bitcoin’s price dynamics. 

Also, you can freely share your thoughts and comments about the topic in the comment section. Additionally, please follow us on our Telegram, YouTube and Twitter channels for the latest news and updates.

The post Why Are Whales Moving Bitcoin to Binance? Weekly Whale Watch appeared first on Coin Engineer.

This decision sparked debates in the traditional finance world. However, Michael Saylor argued that Bitcoin was superior to gold and other traditional assets as a hedge against inflation. Over the years, the company continued to increase its Bitcoin purchases, following a consistent accumulation strategy.

MicroStrategy’s Aggressive Accumulation Strategy

MicroStrategy solidified its identity as a long-term investor by making aggressive purchases, especially when Bitcoin’s price dropped. Some notable acquisitions include:

• May 2021: During a market crash, the company bought $500 million worth of BTC.
• November 2022: Following the FTX collapse, when Bitcoin dropped to $16,000, MicroStrategy seized the opportunity and acquired 42,000 BTC.
• March 2024: As Bitcoin surged to new all-time highs, the company continued its buying spree, further expanding its portfolio.

You Might Be Interested In: Elon Musk Talks About the Name of a New Memecoin!

MicroStrategy’s Latest Acquisition & Future Strategy

The most recent 7,633 BTC purchase has further strengthened the company’s existing Bitcoin reserves. As of now, MicroStrategy’s average acquisition cost stands at $64,524.20, while the current Bitcoin price hovers around $97,476.15.

This translates to a $15.58 billion profit, reflecting a 51.26% return on their Bitcoin investment. Clearly, MicroStrategy’s Bitcoin strategy has proven successful.

However, Bitcoin’s price remains influenced by global economic uncertainties, interest rate policies, and regulations. According to market analysts, if Bitcoin falls below $93,000, nearly $1.7 billion in leveraged positions could face liquidation risks.

Despite these uncertainties, the company remains committed to its long-term accumulation strategy, anticipating that Bitcoin will eventually reach six-figure price levels.

You can also freely share your thoughts and comments about the topic in the comment section. Additionally, don’t forget to follow us on our Telegram, YouTube, and Twitter channels for the latest news and updates.

The post MicroStrategy Continues Acquisitions Without Slowing Down! appeared first on Coin Engineer.

Long-Term Holders Back in Profit

A June 4 study from crypto research company Glassnode shows that “0.03%” of long-term holders, those who had held Bitcoin for more than 155 days, were still in a “position of loss,” while the price of Bitcoin was hovering at $68,000.

This group mostly consists of those who bought Bitcoin during the 2021 bull cycle—when it peaked in November 2021 at $69,000.

With around 4,900 Bitcoin acquired above the current market price, Glassnode observed that even at $68,000, the entire amount of long-term holders at a loss was “negligible.”

Future Projections for Long-Term Holders

All long-term Bitcoin holders will stay profitable as long as the currency’s value exceeds $69,000 over the next few months. But on Aug. 13, the 155-day LTH period will incorporate March 11, the day Bitcoin skyrocketed to $72,110.

Short-term holders, those with Bitcoin for less than 155 days, are bearing most of the unrealized losses, Glassnode observed. These are mostly people who bought in March ahead of March 13’s all-time high of $73,679.

“The vast majority of market losses are being borne by the Short-Term Holder cohort; this is usually observed during bull market corrections from new ATHs,” it said.

Market Speculation and Future Outlook

Glassnode thinks the current price increase is generating fresh market excitement.

“After a multi-month pricing consolidation, the first hints of market speculation seem to be returning,” it said.

Bitcoin is still failing to reach its all-time high, though, even if it is coming really close.

This Might Interest You:  Bitcoin May Hit New High If US Employment and Inflation Slow

Bitcoin’s price on June 6 surpassed $72,000 but fell short, reversing back to $71,000.

According to 10x Research director Marcus Thielen, the United States employment report is scheduled to be published on June 7 and the Consumer Price Index will be published on June 11. Should both print lower results, it might help drive Bitcoin to new all-time highs.

The post Bitcoin Long-Term Holders Turn Profitable as Price Nears All-Time High appeared first on Coin Engineer.

Bullish Sentiment Prevails Despite Sideways Market

Despite the current sideways market trend, analysts remain optimistic, projecting further gains for Bitcoin before the upcoming halving event. Historically, whales have played a significant role in influencing cryptocurrency trends, especially during pivotal periods in bull cycles.

Strategic Purchase after Price Correction

The recent price correction for Bitcoin, following its surge past $70,000, may have triggered renewed bullish activity in anticipation of a future rise. As of this writing, Bitcoin trades at $68,063, reflecting a modest 0.4% increase over the past 24 hours. Crypto commentator MartyParty, writing on platform X (formerly Twitter), highlighted the whale’s strategic purchase at the price dip, followed by the transfer of assets out of the centralized exchange, OKX.

Whale Activity Signals Long-Term Holding

MartyParty’s tweet reads: “Whale movements: 30 min ago 15,745 Bitcoin was bought at $68079 and moved off @okx – worth $1.06b. A whale bought the dip right before the bounce. Wallet: bc1qa87h3yv648nmngfjplskkcq238q7xz4g00575r.” This asset movement out of a centralized exchange suggests a long-term holding strategy by the whale. Conversely, transfers to exchanges often indicate selling pressure, as exchanges facilitate easy Bitcoin sales compared to other custodians used for long-term storage.

You can freely share your thoughts and comments about the topic in the comment section. Additionally, please don’t forget to follow us on our Telegram, YouTube and Twitter channels for the latest news and updates instantly.

The post Bitcoin Whale Purchase Ignites Bullish Speculation as Halving Nears appeared first on Coin Engineer.