Crypto News

Bitcoin Supply On Exchanges Hits Lowest Level Since December 2021 Amid Increasing Mining Costs And Whale Activity

The supply of Bitcoin on exchanges has plummeted to its lowest level since December 2021, with only around 942,000 coins available.

In contrast, Ethereum and Tether are seeing increased inflows. Historically, the limited supply of Bitcoin available for sale reduces the overall drop-off risk for the entire cryptocurrency market.

Currently, the aggregated balance of all major labeled entities stands at approximately 4.23 million BTC, representing 27% of the overall adjusted circulating supply. This adjusted supply figure excludes coins that have been dormant for over seven years.

The breakdown of Bitcoin holdings is as follows:
– US Spot ETFs: 862,000 BTC
– Mt. Gox Trustee: 141,000 BTC
– US Government: 207,000 BTC
– All Exchanges: 2.3 million BTC
– Miners (excluding Patoshi): 706,000 BTC.

Since the last Bitcoin halving, mining costs have surged, now averaging around $77,000 per BTC. This increase in expenses has led to significant capitulation among Bitcoin miners over the past month.

Whales Are Actively Buying Bitcoin 

Despite a recent price decline, on-chain reports from Lookonchain indicate that whales are actively buying Bitcoin. In the past 20 minutes alone, two new wallets have withdrawn a total of 2,000 BTC (worth $135 million) from Binance. The wallet addresses involved are:
– 32a7u8tM45GPSdjzy7PbRvuncEvHFxnYR4
– 3D3a4fPJ5HKw43Qd6QHtoJ6RvMUL7UBDT5

As of June 12, nine ETFs have reduced their Bitcoin holdings by 2,199 BTC (valued at $153.4 million). Notably, ARK21Shares decreased its holdings by 840 BTC ($58.6 million), bringing its total to 48,199 BTC ($3.36 billion). Grayscale also reduced its holdings by 580 BTC ($40.5 million), now holding 283,966 BTC ($19.81 billion).

Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.

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