An
analyst
explained
how
Bitcoin’s
availability
for
trading
has
quietly
declined
during
the
asset’s
recent
consolidation
phase.
Bitcoin
May
Be
In
A
Good
Position
To
Set
New
All-Time
Highs
In
a
new
post
on
X,
analyst
Willy
Woo
discusses
the
recent
trend
in
the
Bitcoin
inventory
sitting
on
centralized
exchange
platforms.
Related
Reading
The
chart
below
shows
how
the
spot
and
paper
BTC
reserves
have
changed
over
the
past
few
years.
like
both
of
these
metrics
have
registered
a
decline
recently
|
Source:
@woonomic
on
X
As
the
graph
shows,
the
Bitcoin
sitting
in
spot
wallets
has
been
declining
over
the
last
couple
of
months.
The
total
amount
of
such
BTC
in
the
custody
of
central
entities
has
now
dropped
to
just
2.3
million.
It’s
also
apparent
that
the
total
sum
of
the
spot
and
“paper”
BTC
(highlighted
in
purple)
has
declined
at
the
same
time.
Paper
BTC
here
refers
to
derivatives
products
related
to
cryptocurrency
that
don’t
actually
require investors
to
own
the
asset.
Thus,
given
that
the
combined
sum
of
the
exchange
inventory
has
gone
down
for
the
cryptocurrency,
it
would
appear
that
the
decrease
in
the
spot
BTC
isn’t
because
paper
BTC
has
replaced
it.
Generally,
the
supply
of
exchanges
is
considered
part
of
the
Bitcoin
supply,
which
is
“available”
for
trading.
As
such,
due
to
how
supply-demand
dynamics
work,
less
of
this
available
supply
may
be
a
constructive
sign
for
the
cryptocurrency.
From
the
graph,
it’s
visible
that
this
decline
in
the
exchange
inventory
has
come
during
a
period
where
the
price
of
the
cryptocurrency
has
struggled
after
setting
a
new
all-time
high
(ATH).
As
Woo
notes,
While
everyone
was
freaking
out
that
Bitcoin price
was
not
rising
the
last
2
months,
available
BTC
was
quietly
being
scooped
up,
and
importantly
without
paper
BTC
printed
in
its
place.
Thus,
the
fact
that
the
available
supply
has
gone
down
during
such
a
period
could
be
a
bullish
sign
for
the
coin.
“It’s
only
a
matter
of
time
before
BTC
squeezes
past
all-time
highs,”
says
the
analyst.
Related
Reading
In
another
X
post,
Woo
also
discussed
how
capital
inflows
into
Bitcoin
have
just
started
to
pick
up
again
after
registering
a
steep
drop
earlier.
value
of
the
metric
appears
to
have
been
rising
in
recent
days
|
Source:
@woonomic
on
X
As
the
chart
shows,
network
inflows
spiked
alongside
the
all-time
high,
but
they
observed
a
major
slowdown
in
the
consolidation
that
followed.
The
inflows
from
spot
exchange-traded
funds
(ETFs),
highlighted
in
light
green,
also
disappeared
earlier,
but
they
have
now
made
a
comeback
alongside
these
fresh
capital
inflows.
BTC
Price
Bitcoin
had
recovered
as
high
as
$71,000
earlier
but
appears
to
have
slipped
off
over
the
last
few
days
as
it
has
now
returned
below
the
$68,000
level.
price
of
the
asset
seems
to
have
plunged
during
the
past
24
hours
|
Source:
BTCUSD
on
TradingView
Featured
image
from
Shutterstock.com,
woocharts.com,
chart
from
TradingView.com
Go to Source
Author: Keshav Verma
