Only 40 Bitcoin left? BTC rally drains major exchanges
Bitcoin (BTC) popularity and demand surged immensely as its price ran towards the $64,000 price mark. The world’s biggest cryptocurrency has added a gain of 21% in the last 7 days. However, data shows the major crypto exchanges were struggling to keep up with the demand.
bitcoin demand peaking?
Glassnode on Wednesday reported that major US OTC platforms have run out of bitcoins, with only 40 coins remaining. This development shows an imminent supply shortage which directly signals the potential for a big price pump shortly.
BTC briefly breached the $63,000 level, inching closer to its record high of $69,000 set in November 2021. The sudden climb seemed improbable just a few months ago when Bitcoin was trading at around $25,000.
The catalyst behind this surge has been the introduction of Bitcoin exchange-traded funds (ETFs) in January. This move was baked by financial giants like BlackRock and Fidelity. Institutional involvement through these ETFs has played a crucial role in driving Bullish sentiments.
The latest data shows a surge in Bitcoin block put options volume. This has reached a notional value of over $500 million. It is important to note that there were transactions that included a bear spread consisting of 55,000 Put/50,000 Put. While there were orders below $45,000 to liquidate put option positions.
Surge to continue?
Moving forward, there are three bullish catalysts for Bitcoin. These factors are anticipated outside of monetary policy considerations. The upcoming halving event in April 2024, coupled with the anticipated 13F filings for Bitcoin ETFs in April/May and the launch of a Hong Kong ETF in April, are expected to further drive demand.
With Bitcoin nearing $70,000 now, the flow of crypto money may leave gold appearing less appealing. Gold ETF outflows and declining futures open interest in gold indicate a strengthening foundation for crypto. Gold ETF is going opposite to BTC trend.
As mainstream adoption grows, with approximately $70 billion flowing into spot Bitcoin ETFs since January, bullish predictions now target Bitcoin prices surpassing $100,000. However, analysts caution that the current cost of production, estimated at around $27,000, provides a potential price floor. After the halving event, this floor is expected to rise to approximately $50,000 in the short term, according to JPMorgan.
Bitcoin price saw a marginal decline in the last 24 hours. BTC is trading at an average price of $61,831, at the press time.
