According to latest data on the CryptoQuant chart above, Bitcoin exchange deposits have dropped to 1,941,094 BTC at the time of writing on May 10.
Effectively, BTC holders have shifted 5,131 BTC from exchanges into long-term storage between May 2 and May 10, 2024. Valued at the current prices, investors have inadvertently removed $320 million worth of BTC from the short-term market supply.
When market supply of an assets dips during a period of steady demand, it creates a short-term supply squeeze, driving up prices as buyers are forced to up their bids marginally. Unsurprisingly, Bitcoin price has recorded 12% uptick during that period.
More so, historical patterns suggest the BTC is likely to continue advancing towards $65,000 if exchange supply declines further.
BTC Price Forecast: Bitcoin to stay above $60k Despite ETF Outflows
Bitcoin price struggled to advance above $63,000 this week, as Bitcoin ETFs inflows slowed considerably. But with $320 million less BTC available to be traded on exchanges, Bitcoin price looks set to avoid major downswing below $60,000 in the days ahead.
IntoTheBlock global in/out of the money chart below also affirms optimistic Bitcoin price forecast.
