Bitcoin exchange supply plummets as BTC moves above $100,000

Bitcoin’s (BTC) exchange supply, a measure of how many units of the cryptocurrency are readily available to trade, has steadily been dropping over the past month — with the trend accelerating after BTC crossed the $100,000 mark on May 9.On May 13, 2.46 million BTC were being held on exchanges, per data retrieved from crypto market intelligence platform CryptoQuant — roughly a month ago, on April 14, exchange supply amounted to 2.56 million Bitcoins — meaning that 3.9% of the BTC held on exchanges has been withdrawn in the course of a month.BTC exchange supply 1-month chart. Source: CryptoQuantWhen cryptocurrencies are withdrawn from exchanges, the most common destination are private wallets meant for long-term storage. Beyond demonstrating long-term bullishness, this tends to reduce selling pressure.Shrinking Bitcoin exchange supply and bullish metrics signal that the current BTC slump is temporaryAs impressive as Bitcoin’s short-term performance has been, the rally has cooled off significantly. At press time, BTC was changing hands at a price of $103,260, with weekly returns standing at 6.51%. However, in the last 24 hours, the cryptocurrency is only in the green by 0.10% — having marked a 1.5% drop from a daily high of $104,840.BTC price 1-week and 1-day charts. Source: FinboldWhile the prospect of BTC testing support at $100,000 remains a distinct possibility, the wider crypto market’s recovery, as well as positive price action from equities make a drop below support unlikely.Conversely, several strongly bullish factors are at play. The move above $100,000 caused open interest, a measure of derivatives positions, to reach a 3-month high. Since roughly $20 million in short positions were liquidated between May 13 and May 14 alone, speculative trading is trending toward the bullish side.Featured image via ShutterstockThe post Bitcoin exchange supply plummets as BTC moves above $100,000 appeared first on Finbold.