Bitcoin has surged past the $70,000 mark as accumulation of the cryptocurrency resumes, resulting in a significant drop in Bitcoin supply on Coinbase, hitting a nine-year low. On March 25, Bitcoin reclaimed the $70,000 threshold after a period of consolidation, with CoinMarketCap data indicating a resurgence in accumulation activities driving the price upwards. This marks the first time since March 15 that Bitcoin has reached this milestone.
Coinbase Records Lowest Bitcoin Supply in Nine Years
The supply of Bitcoin on Coinbase plummeted to its lowest point in nine years, with reserves hitting 344,856 BTC on March 18. This trend underscores a renewed interest among investors in accumulating BTC off exchanges, with levels not seen since 2015, according to data from Glassnode.
Accumulation addresses, those holding over 10 BTC with no outgoing transactions or ties to centralized exchanges and mining firms, have seen a notable increase in total Bitcoin balance, nearing a record high of over 3.2 million BTC. This growing trend is further evidenced by a surge in Bitcoin inflows to accumulation addresses, hitting an all-time high of 25,300 BTC on March 22, according to data from CryptoQuant.
With Bitcoin reserves on exchanges reaching a three-year low of 1.92 million BTC on March 25, there is speculation that the cryptocurrency’s price may continue to rise. This is supported by the historic lows in BTC supply on exchanges, coupled with significant inflows into exchange-traded funds (ETFs), which have already attracted billions in investments. This suggests that larger investors are positioning themselves for further upside potential following a recent 15%–20% drawdown from Bitcoin’s all-time high of approximately $74,000.
