Bitcoin ($BTC) is going through an imminent shortage in supply. As per the data from Glassnode, long-term Bitcoin ($BTC) holders are continuously accumulating, leading to a supply squeeze, specially in terms of $BTC balances on exchanges. The on-chain analytics platform took to its official social media account to share details of the ongoing squeeze in Bitcoin’s supply.
Bitcoin Faces Exchange Pressure as Long-Term Holders Accumulate
The on-chain data points out that the Bitcoin ($BTC) ecosystem is facing a significant pressure on supply. In this respect, a key role is being played by the long-term holders. These holders are reportedly making continuous accumulation, paving the way for a wide-level supply squeeze, particularly in $BTC balances on crypto exchanges.
In addition to this, Bitcoin’s exchange liquidity also displays a very thin layer, raising concerns among the traders and the community. Particularly, the market data also discloses that the long-term holders have occupied over 800,000 $BTC coins over the past 30 days.
Hence, this pace is nearly sixty times speedier than the cumulative $BTC that the miners mined during the respective time. The total mined $BTC amount during this period totaled at 13,500 $BTC. The respective broad accumulation, unseen during the past bull markets, is creating a huge liquidity vacuum.
Massive Institutional Inflows Raise Concerns for $BTC Supply Squeeze
According to Glassnode’s data, the dropping $BTC balances across cryptocurrency exchanges underscore an imminent supply shock. Thus, as $BTC reserves on centrally controlled exchanges are declining to notable lows, an alarming dip is being witnessed in sell-side depth.
The robust institutional inflows, including a net $2.2B inflow in the recent couple of days, are exacerbating this scenario. Keeping this in view, if demand for Bitcoin persists or increases, the market could experience a noteworthy supply squeeze.
