Bitcoin (BTC), the world’s oldest and largest crypto, has caught massive attention lately owing to extreme volatility. The Bitcoin price has been swinging between the $60,000 and $67,000 levels after touching the all-time high of $73,750. Moreover, Bitcoin is being drained out of the exchanges as its exchange supply has hit an all-time low.
Bitcoin Exchange Supply Touches All-Time Low
According to Coinglass, the Bitcoin exchange supply slumped to a low of $1.79 billion on Friday, March 23. Furthermore, the Coinbase Pro exchange served as the prime contributor to the BTC drain from crypto exchanges. On Friday, over 14,800 BTC were withdrawn from Coinbase Pro.
In addition, the last 30 days witnessed a drain of nearly 58,000 BTC from Coinbase Pro . Furthermore, the Bitcoin drain led to a major rebound in the BTC price recently as its scarcity escalated owing to the supply shock. Hence, the Bitcoin price sustained the $67,000 level, recovering from the low of $60,000.
On the other hand, the BTC exchange supply also recovered as over 1,500 BTC flowed into Coinbase Pro on Monday, March 25. However, the drain from Binance, Kraken, and Bybit continued. Binance accounts for nearly 4,000 Bitcoin withdrawal in the past 30 days. Moreover, Bitfinex accounted for a drain of over 30,400 BTC in a month.
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BTC Price Recovery
The Bitcoin price rebounded massively and traded at $67,139.08, gaining 4.68% at press time on Monday, March 25. Whilst, the crypto boasted a market capitalization of $1.32 billion. Furthermore, the 24-hour trade volume for BTC surged 32.14% to $29.95 billion.
Amid the price rebound, over $61.84 million worth of Bitcoin holdings were liquidated. Shorts dominated the arena and accounted for a massive $46.27 million liquidations in the past 24 hours. The buy back of their positions would lead to a higher price surge in the short term.
However, after the short squeeze, a massive plunge in BTC value could be registered. Moreover, analysts like Michaël van de Poppe expect a 10-40% correction in the BTC price before the Halving event. Whilst, a new peak awaits after the Halving in April this year.
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The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
