Bitcoin reserves are down to 2.62 million across exchange platforms, making a new low since January 01, 2024, with a decrease of approximately 12.9%. The decline is associated with a transfer to cold storage, demonstrating investors’ growing confidence. Still, investors are reluctant to sell their holdings, so they have transferred bitcoin to cold storage. It further reflects a reduction in selling pressure in the future.
In the last 24 hours, the value of BTC has been $58,854.24, down by 0.80%. Bitcoin reserves hitting a new low indicate that the coin will soon surpass the $60,000 mark. Assuming that happens, Bitcoin reserves will be one of the contributing factors to the trend. There is now no sign of large-scale panic selling, and BTC projections are only getting more resilient.
Other factors that could contribute to the rising value of BTC are rate cuts and Spot Bitcoin ETF flows. The ongoing political scenario is also heating up, with elections fast approaching. Donald Trump has been tagged as the Crypto President for supporting the segment. He even launched his collection of digital trading cards. It goes on to strengthen the NFT market while also accelerating its popularity across the US. Moreover, it instills confidence that Trump is, at least, standing to this commitment of coming forward for the market.
The Federal Reserve is more likely to cut rates now by 25 bps, fueling liquidity from investors. Many have already transferred holdings to cold storage with little to no intention of selling them right now. So, they could go on an investment spree after rate cuts, as that would facilitate borrowing capacity.
However, Spot Bitcoin ETFs are currently experiencing a challenging period, with negative flows for the third consecutive day. Even BlackRock reported outflows on August 29, 2024. For the first time, IBIT marked an outgoing movement since the launch. Net outflows account for $13.5 million out of the collective figure of $71.8 million. Grayscale is on the list with $22.7 million. The list is topped by Fidelity’s FBTC, with an outflow of $31.1 million.
Bitcoin reserves on exchanges hitting a new low in 2024 since January 01, 2024, is associated with a reduction in selling pressure. While this may be true, the next few days will reveal whether the reserve levels alone drive the trend or if rate cuts play a significant role. After a recent market crash, crypto investors are eager for a rebound, and many long-term holders will welcome any upward price movement.