Bitcoin exchanges witness a staggering $10 billion decline in BTC balances during 2024

Bitcoin (BTC) worth almost $10 billion has been withdrawn from crypto exchanges since the launch of spot exchange-traded funds (ETFs) in the United States. Data from on-chain analytics firm Glassnode reveals that exchanges have seen a decrease of over 136,000 BTC since January 11. The withdrawal trend continues as Bitcoin supply dynamics remain favorable for bulls, with mass withdrawals from exchanges this quarter. Since the introduction of US spot Bitcoin ETFs, approximately $9.5 billion worth of BTC has been withdrawn from major trading platforms. On March 27 alone, withdrawals totaled more than 22,000 BTC ($1.54 billion), marking the third-largest daily tally of 2024. Additionally, a significant transfer of stablecoin USD Coin (USDC) to Coinbase, the largest US crypto exchange, has been observed, with $1.4 billion USDC moved into the exchange. This is the largest inbound transfer of USDC in history. The long-term impact of ETFs on the available BTC supply and price is a topic of increasing interest among market observers. Many sources predict a major supply squeeze in the next six to twelve months, as demand for BTC outpaces the available supply for sale. ETF buying alone already represents a much greater buying force than the newly unlocked BTC by miners each day. With the upcoming block subsidy halving event in mid-April, the ratio will increase further as the BTC supply expands by just 3.125 BTC per newly-mined block. Charles Edwards, founder of Capriole Investments, emphasized the significance of the upcoming halving event and its potential impact on the market. This article does not provide investment advice or recommendations, and readers are advised to conduct their own research before making any investment decisions.