Key Takeaways
- Bitcoin supply on exchanges is on pace to deplete in nine months due to halving and ETF accumulation.
- Exchange reserves of Bitcoin at a near three-year low of 1.94 million BTC.
- Anticipated price recovery post-halving due to decreased Bitcoin supply.
Bitcoin supply on cryptocurrency exchanges is forecasted to run out in nine months, owing to the 50% supply issuance reduction from the upcoming Bitcoin halving this week.
Continuous demand from U.S. Bitcoin ETFs is expected to deplete exchange reserves rapidly.
Near three-year low for exchange reserves
As of April 16, Bitcoin reserves on centralized exchanges fell to a near three-year low of 1.94 million BTC.
This decrease in reserves is occurring amidst a broader market downturn, which saw Bitcoin’s price drop over 10% in the past week.
Expectations of price recovery post-halving
Bybit, currently the world’s third-largest exchange, predicts a price recovery following the current market correction.
Bybit noted in their report:
It’s unsurprising that Bitcoin’s price may continue to climb before the halving, or even afterward, as the supply squeeze propels the price to another new record.
