The crypto industry has been witnessing several events unravel over the last couple of months. Lawsuits, meme coin frenzy, BRC-20 tokens, as well as the infamous Securities and Exchange Commission [SEC] crackdown, to name a few, have been taking over the industry. Amidst this, Bitcoin [BTC] held onto its position of over $26K. However, its supply on exchanges began deterring.
Recent data from Santiment revealed that the supply of Bitcoin on crypto exchanges has reached its lowest point since February 2018. This significant decrease can be attributed to the regulatory actions taken by the SEC against major exchanges like Binance and Coinbase. The lawsuits filed against these firms, alleging the sale of unregistered securities to U.S. customers, resulted in about 6.4% of the Bitcoin supply being withdrawn from these exchanges.
According to Santiment, there has been an observation of traders moving their Bitcoin holdings from exchanges to self-custody. The network also predicted that this trend will continue despite the increasing legal actions taken by the SEC. Although the decreasing supply of Bitcoin may not be favorable in terms of circumstances, the movement of BTC out of exchanges is seen as a positive sign. This suggested that investors are accumulating the crypto asset instead of selling it, which is considered a bullish indication.
Is Bitcoin on ‘thin ice’?
At press time, Bitcoin had fallen below a significant zone, and its trading price stands at $25,950, experiencing a 0.78% decrease within the day. Crypto analyst Ali Martinez has expressed concerns about Bitcoin being on thin ice. The analyst provided insights indicating that Bitcoin has encountered significant resistance in the range of $26,000 to $28,000.
Furthermore, popular analyst Michael Van de Poppe has indicated that Bitcoin will face a critical resistance level at $26,400. This is likely to occur during an upward movement. Additionally, the market may remain under strain leading up to the FOMC meeting scheduled for today. He revealed that this would raise the possibility of Bitcoin’s price further declining to the range of $24,500 to $25,000.