Bitcoin might be up for a bullish break in no distant time as exchange reserves for Bitcoin continually decline. The supply of BTC in exchanges has hit a six-month low according to Santiment, a crypto analytics firm. The conclusion is that more investors are accumulating the digital coins in expectation of a bullish run.
The primary digital asset has taken a rocky path since the mid-May capitulation. Bitcoin lost more than 56 percent of its recent all-time high in May leaving investors uncertain about the future. However, hope is rising as BTC exchange supplies rapidly diminish.
In essence, the possibility of a near selloff is unlikely. Santiment tweeted the information on Monday, describing it as a “promising news” for the currency.
Metrics indicating the inflow and outflow of digital assets are important in determining the next move the asset might take. If inflows increase, it implies that investors are rapidly dumping the cryptocurrency and vice versa. This scenario might trigger a negative perception of the asset, causing more investors to sell off their holdings.
Is this an End to Bitcoin Bears?
Cryptocurrency exchanges recorded a surge in the inflow of Bitcoin in May. The decline is attributed to the suspension of the asset by Tesla and the follow-up crackdown by the Chinese government.
Some analysts like the JPMorgan Chase team called for a Bitcoin decline to the $25k zone before a proper bull run takes place. Bitcoin did test the below $30k trajectory late in June before rising steadily again.
Majorly, the crypto market is still in an indecisive state and it is yet unclear the next turn it’d likely take. However, with the institutional adoption of more altcoins and the current accumulation of Bitcoins, a bullish break might be inevitable.