Bitcoin shortage on exchanges comes to a head

The Bitcoin Halving reduces the supply of Bitcoin. Investors are hoping for price increases and are pulling their BTC from the exchanges.

While the Bitcoin price is above $70,000, BTC positions on exchange around the world continue to fall. In the past three months, about 140,000 BTC have been withdrawn from the exchanges extracted.

A longer observation period illustrates the trend of declining supply even more drastic. Since mid-October 2022, Bitcoin supply on exchanges has dropped from 2.72 million BTC to just 2.303 million BTC.

Percentage wise, only 11.6 percent of all Bitcoin held on exchanges, the lowest figure since April 2018.

This declining supply is currently being met by growing demand from institutional investors. Three months after Bitcoin ETF adoption, issuers have already withdrawn more than 500,000 BTC from the market, according to Apollo data.

The supply shortage could be exacerbated by the impending halving, which will again halve the amount of Bitcoin produced per new block. The halving is predicted to occur in late April.