Breaking Crypto News – Bitcoin Exchange Reserve Metric: A Deep Dive
Breaking Crypto News – Based on statistics from June 19, 2024, the total amount of Bitcoin available on exchanges, or the Bitcoin exchange reserve, has fallen to a 3-year low. According to data from CryptoQuant, there are 2,825,703 Bitcoins available on exchanges at the moment. The Bitcoin exchange balance in January 2024 was approximately 3,039,000. Because there is comparatively less supply available for purchase, low exchange reserves mean that there is less selling pressure and a possibility of supply shocks.
FED’s More Hawkish Than Expected Announcements Cause ETF Outflows
After Bitcoin ETFs were approved in the US in January 2024, the supply of Bitcoin was further pressured by accumulation from asset managers such as BlackRock. Roughly 274,000 Bitcoin were held by BlackRock’s iShares Bitcoin Trust (IBIT) as of June 6. $2 billion in monthly inflows were recorded into digital asset funds in May 2024, with the majority of these inflows coming from Bitcoin investment funds and products. Nearly $73 billion in Bitcoin is held globally by Bitcoin investment vehicles, according to the June 17 Coinshares Weekly Fund Flows report.
That same data did, however, also show that during the week of June 15, 2024, Bitcoin investment vehicles saw weekly withdrawals of $621 million. Since the week of March 22, 2024, these outflows have been the biggest and most notable. Coinshares conjectured that a capital flight from fixed-supply assets such as Bitcoin was caused by “more hawkish-than-expected” remarks made by the Federal Reserve, suggesting that interest rates will remain high.
FAQ
What is the Bitcoin Exchange Reserve?
That is the entire quantity of coins that are kept in the exchange. The reserve values are still rising, which suggests stronger selling pressure and a generally downward trend in price.
What Does it Mean When the Fed is Hawkish?
The Federal Reserve sets monetary policy and can be either dovish or hawkish depending on its objectives. Monetary policy that leans hawkishly emphasizes low inflation and may raise interest rates, while dovish policy places more emphasis on low unemployment and may result in rate reductions.
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