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CryptoQuant: Exchanges are running out of Bitcoin stocks

The preference of Bitcoin holders to view the asset as a long-term investment reduces the available supply of coins for trading. Over the next nine months, cryptocurrency exchanges will exhaust their reserves of BTC, analysts at CryptoQuant predict.

The total available reserves of cryptocurrency exchanges in Bitcoin decreased by more than 800,000 BTC and reached the lowest value in the entire history of two-year observations. As of April 16, available exchange reserves amount to about 2 million BTC.

Assuming that the daily inflow of Bitcoin into spot BTC ETFs is around $500 million, which at current prices is equivalent to approximately 8,025 BTC, it would only take nine months to completely exhaust the available reserves, CryptoQuant claims.

The results of calculations using the Stock-to-Flow (S2F) model, which demonstrates the ratio of the use of an asset to its reserves, show that after halving, Bitcoin’s S2F ratio will reach 112 points. This is almost double the S2F for gold (60 points). Thus, by January 2025, the first cryptocurrency will become a scarcer commodity than the most popular precious metal.

The day before, the CEO of the research company 10x Research, Markus Thielen, said that the cryptocurrency market, like the US stock market, is on the verge of shocks and a significant price correction.

Source: Cryptocurrency

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