The price of Bitcoin has recently started surging, moving up more than 4.9% over the last 24-hour period to surpass the $65,000 mark and near $66,000 at the time of writing, with the price rise coming after positive on-chain indicators suggest supply is decreasing.
According to data from on-chain analytics firm CryptoQuant, shared on the microblogging platform X (formerly known as Twitter) by analyst TheLordofEntry, Bitcoin reserves on exchanges recently hit an all-time low of 2.6 million BTC, down from over 3.3 million seen nearly three years ago.
Meanwhile, the Bitcoin network has remained active, with high levels of transaction volume and address usage as long-term holders keep on accumulating, while short-term holders “show sign of selling.”
Lower Bitcoin reserves on exchanges suggest that available supply on the market is dropping, which means that the price of the cryptocurrency could rise if demand remains steady, or if it increases. BTC’s price could have also recently benefitted from the trustee overseeing Mt. Gox’s assets announcing another delay in distributing the remaining funds to creditors, pushing the deadline by one year to October 31, 2025.
Mt. Gox was once one of the world’s largest cryptocurrency exchanges, but it collapsed after a major hack in 2014. Although some creditors have been repaid, data shows wallets linked to its estate still hold 44,900 BTC worth approximately $2.8 billion.
Supply on the market may have also dropped as Bitcoin staking protocol Babylon has recently reopened for additional BTC deposits, and drew in about $1.5 billion worth of the flagship cryptocurrency shortly after doing so as investors rushed in to stake their coins in less than an hour and a half.
Babylon aims to add utility to the flagship cryptocurrency by launching a Proof-of-Stake marketplace powered by Bitcoin that will allow third-party protocols to leverage it for their security.
It is one of various Bitcoin liquid staking protocols looking to allow BTC holders to earn rewards for staking their coins. Other methods holders use to leverage their BTC holdings to generate rewards include lending and options strategies.
Featured image via Unsplash.
