Bitcoin (BTC) surged past the $70,000 mark on March 25, marking a significant milestone after a two-week hiatus. The surge in price coincided with a decrease in Bitcoin supply on the Coinbase cryptocurrency exchange, reaching a nine-year low.
According to data from CoinMarketCap, BTC reached $70,000 at 4:47 pm UTC, marking its first return to this level since March 15. On the supply side, Bitcoin reserves on Coinbase dropped to a nine-year low of 344,856 BTC on March 18, indicating that investors are once again accumulating BTC off exchanges. This is the lowest level of reserves on Coinbase since 2015, as reported by data provider Glassnode.
Furthermore, the total Bitcoin balance in accumulation addresses has rebounded to over 3.2 million BTC, approaching a record high, according to Glassnode’s chart. Accumulation addresses are defined as those holding over 10 BTC with no outgoing transactions or connections to centralized exchanges and mining firms.
Highlighting the growing accumulation trend, Bitcoin inflows to accumulation addresses reached a new all-time high of 25,300 BTC on March 22, as reported by IT Tech, a verified CryptoQuant author. This suggests that large investors are likely anticipating further upside potential after the recent 15%-20% drop from the all-time high of around $74,000.
In total, Bitcoin reserves on all exchanges hit a three-year low of 1.92 million BTC on March 25, according to data from CryptoQuant. This indicates that there may still be room for Bitcoin’s price to increase, given the historically low supply on exchanges and the growing demand from exchange-traded funds (ETFs), which have already attracted billions in inflows.
It is important to note that this article does not provide investment advice or recommendations. All investments and trading decisions involve risks, and readers are advised to conduct their own research before making any decisions.