CryptoPotato • October 7th 2026, 7:38 AM
24,000 BTC Just Left Exchanges: Is Bitcoin’s (BTC) Supply Crunch Heating Up?
Key Summary
Bitcoin's exchange supply has plummeted to 6.5% of the total supply, sparking concerns of a supply crunch. Large outflows signal investors are shifting towards longer-term custody, supporting higher prices if demand stays steady. Institutional investors, however, have been buying into Bitcoin ETFs, injecting $129 million into the market.
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Supply Crunch Deepens
Bitcoin's Exchange Supply Plummets
BTC held on exchanges has dropped notably, according to Santiment. On Monday, about 24,073 units left exchanges on a net basis, marking the largest daily outflow in seven months. This has brought the exchange-held Bitcoin to around 6.50% of the total supply.Institutional Investors Boost ETF Inflows
On the institutional side, US spot Bitcoin ETFs saw a significant change in investor mood this week. After starting Monday with almost $90 million in net outflows, the funds bounced back on Tuesday with combined inflows of $119 million. BlackRock's IBIT led the recovery, pulling in $122 million in fresh money and recording the biggest inflow among the ETFs. Morgan Stanley's MSBT also attracted $7.84 million in capital.
Mid-Size Investors Take a Step Back
Despite the recent price surge, mid-size investors appear to be cautious about sending coins to exchanges. Mid-size inflows on Binance and Coinbase Prime have fallen, with the 7-day average on Binance declining by over 36%.
Price Outlook
The drop in exchange supply, coupled with institutional investor buying, could support higher prices if demand stays steady. However, the overall market trend remains bullish, with Bitcoin trading above $84,000 and climbing over 33% since mid-August.
#Bitcoin#US#Crypto#SEC#ETFs