Bitcoin (BTC), amidst extreme volatility, has garnered significant attention as its price fluctuates between $60,000 and $67,000, following a peak of $73,750. Notably, BTC is experiencing a depletion in exchange supply, reaching an all-time low.
Scarcity-Driven Bitcoin Rebound: Exchange Withdrawals Fuel Price Recovery to $67,000
According to Coinglass data, the exchange supply of Bitcoin plummeted to $1.79 billion on Friday, March 23, with Coinbase Pro witnessing a substantial withdrawal of over 14,800 BTC. Over the past month, nearly 58,000 BTC have been drained from Coinbase Pro alone, contributing to a scarcity-driven rebound in Bitcoin's price. This scarcity factor has helped maintain the BTC price at $67,000, recovering from a recent low of $60,000.
Bitcoin Supply Shock Triggers Surge in Price Amidst Significant Exchange Withdrawals and Liquidations
While there was a slight influx of 1,500 BTC into Coinbase Pro on Monday, March 25, withdrawals continued on Binance, Kraken, and Bybit. Binance saw nearly 4,000 BTC withdrawn in the past month, while Bitfinex witnessed a drain of over 30,400 BTC.
In response to this supply shock, the Bitcoin price surged by 4.68% to $67,139.08, with a market capitalization of $1.32 billion and a 24-hour trade volume of $29.95 billion. However, amidst the price rebound, liquidations of over $61.84 million worth of Bitcoin holdings occurred, dominated by shorts which accounted for $46.27 million in liquidations over the past 24 hours. The potential buyback of these positions could lead to further price surges in the short term.