While Bitcoin (BTC) is hovering around its yearly highs, a report from CryptoQuant shows that the supply on centralized exchanges is its lowest in six years.

Whales usually transfer their Bitcoins to a centralized exchange for offloading them. When they are accumulating, they withdraw from the centralized exchanges to self-custody solutions.

Hence, a low supply on centralized exchanges is typically considered a bullish signal for crypto assets. It may indicate that investors are not intending to sell their assets anytime soon. However, there are other factors that investors should be cautious about.

Bitcoin (BTC) May Surpass $50,000: CryptoQuant

A CryptoQuant community member, “Papi,” shared that Bitcoin supply on centralized exchange is back to 2017 levels for the first time. They wrote:

“We are in the 45th month of diminishing supply.”

Additionally, according to a CryptoQuant report, Bitcoin might skyrocket in the $50,000 — $53,000 range during the beginning of 2024. The report cited a Metcalfe price valuation band metric that relies on data such as market capitalization, transaction volume, and user activity.

Short-Term Correction Imminent?

In contrast, the report also advised exercising caution, considering

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Author: Harsh Notariya

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