Bitcoin Balances Drop to 2018 Levels amid ETF Surge and Historic Options Expiry
Summary:
Bitcoin balances on crypto exchanges have seen a significant drop, falling to their lowest since 2018. The approval of Spot ETFs in the US prompted approximately $10 billion worth of Bitcoin outflows this year. Despite this, the largest-ever Bitcoin options expiry had minimal impact on the price, and spot bitcoin ETFs now account for 2.5% of the total circulating supply. A court case also saw SBF receive a 25-year prison sentence in a US federal court, marking another key event in the crypto industry.
A striking decline in Bitcoin (BTC) balances on cryptocurrency exchanges has been noted, dropping to lows not seen since 2018. So far, the largest ever Bitcoin options expiration seems to have had minimal impact on the digital currency's price. Meanwhile, Bitcoin Spot Exchange-Traded Funds (ETFs) now hold 2.5% of the entire circulating supply after being in the market for less than three months.
This year so far, around $10 billion in Bitcoin has seen an outflow from crypto exchanges, spurred on by the sanctioning of Spot ETFs in the United States. Glassnode statistics depict that Bitcoin balances on exchanges have gone down by over 136,000 BTC since Jan. 11, the day Spot ETFs initiated trading. Cumulatively, exchange balances have hit the lowest since the year 2018, demonstrating an unwavering retreat. Data from Glassnode also reveals an impressive 22,000 BTC being pulled from exchanges on March 27, the third most substantial single-day withdrawal this year.
Despite the Bitcoin market's relative stagnation over the past few weeks, investors seem optimistic about the upcoming quadrennial halving event set to take place in late April. Charles Edwards, the founding figure of Capriole Investments predicts an exciting development as Bitcoin is about to become a lot scarcer than gold with its supply growth rate halving.
On March 29, the price of Bitcoin remained steady over the $69,000 mark, despite experiencing the most substantial quarterly futures options expiration in its history. The event saw the expiration of over $15.1 billion cryptocurrency futures options on Deribit at 8 in the morning UTC as reported by Deribit.
Spot Bitcoin ETFs launched in January 2022 have managed to accumulate over 500,000 Bitcoin. This figure represents a substantial 2.54% of the current circulating supply. A significant amount of $35 billion in Bitcoin is now held by the nine exchange-traded funds that began trading on Jan. 11, making it a significant achievement over a span of 54 trading days.
A high-profile case saw SBF receiving a 25-year sentence in a federal court of the US. Judge Lewis Kaplan delivered the condemnation stating SBF would serve sentences for his conviction on seven felony charges, along with one for tampering. The move was followed by guilty pleas and negotiation of plea deals by former FTX and Alameda executives Gary Wang, Caroline Ellison, Nishad Singh, and Ryan Salame.
Consultations from Geraint Price, Sam Bourgi, and Felix Ng contributed to the elaboration of this report. Remember, every investment move involves risk. Researchers are encouraged to carry out their investigations before making a decision.
Published At
3/29/2024 7:43:41 PM
Disclaimer: Algoine does not endorse any content or product on this page. Readers should conduct their own research before taking any actions related to the asset, company, or any information in this article and assume full responsibility for their decisions. This article should not be considered as investment advice. Our news is prepared with AI support.
Do you suspect this content may be misleading, incomplete, or inappropriate in any way, requiring modification or removal?
We appreciate your report.