Bitcoin exchanges witness a steep decline of nearly $10 billion in their BTC holdings in 2024.

The launch of United States spot exchange-traded funds (ETFs) has resulted in the withdrawal of nearly $10 billion worth of Bitcoin (BTC) from crypto exchanges. Data from Glassnode, an on-chain analytics firm, reveals that exchanges have seen a decrease of over 136,000 BTC since January 11. The trend of BTC leaving exchanges continues, indicating a preference for holding Bitcoin rather than selling it for profit. The launch of US spot Bitcoin ETFs has led to approximately $9.5 billion worth of BTC being withdrawn from major trading platforms, with the lowest exchange balance recorded since April 2018. On March 27 alone, over 22,000 BTC ($1.54 billion) was withdrawn, marking the third-largest daily withdrawal of 2024. Additionally, a significant transfer of stablecoin USD Coin (USDC) to Coinbase, the largest US crypto exchange, has been observed. This transfer is the largest inbound transfer in history and has raised speculation about the possibility of strong buying pressure. The long-term impact of ETFs on the available BTC supply and price is a topic of interest among market observers, with predictions of a supply squeeze within the next six to 12 months. ETF buying power is already greater than the daily BTC unlocked by miners, and after the upcoming block subsidy halving event in mid-April, this ratio will increase further. The anticipation for the halving event has led to growing optimism in the Bitcoin market. Charles Edwards, the founder of Capriole Investments, emphasized the significance of the upcoming halving event in his latest market commentary. As always, readers are advised to conduct their own research and make informed decisions when it comes to investments and trading.