Bitcoin Exchange Balances Hit 5-Year Low as Price Approaches $97,000

The volume of bitcoins on centralized crypto exchanges has reached its minimum value for the last five years: this was reported by analysts of the Swan platform in a fresh report. At the same time, the last days the cost of the main cryptocurrency balanced in the zone of 95 thousand dollars and until today did not show sharp jumps. It turns out that there is indeed a correlation between these two indicators. In this regard, experts explained when to expect a new, larger BTC growth wave. What will happen to the Bitcoin price? Bitcoin exceeded the level of 97 thousand dollars this afternoon. The 15-minute chart of the cryptocurrency on the Binance exchange ends up looking like this: All this is happening against the backdrop of the withdrawal of coins from trading platforms. According to CryptoPotato source, some BTC is leaving exchanges for cold wallets, which is traditionally a bullish signal due to investors' long-term confidence in Bitcoin's growth. However, a significant portion of the coins are going into institutional storage. These are structures like ETF, which attract funds from major industry players. Here's a comment on what's going on. The coins aren't disappearing anywhere. They are simply moved to a new location for active use. In addition, not all of these BTC remain unmoved. Some are stored passively and some participate in structured products, yield platforms or are used as collateral. That is why the price of the first cryptocurrency does not grow instantly, analysts note. This is also true for the whole crypto market, as altcoins are largely dependent on what happens with BTC. Bitcoin is still a market, and in a market, sellers don't disappear anywhere. Some market players are traders aiming for short-term profits. Others are long-term holders locking in profits. There are also those who never realized what they bought. Experts also commented on the ongoing accumulation of bitcoins by Michael Saylor's Strategy company. According to them, miners mine about 13,500 BTC per month, but Strategy, resorting to various capital borrowing instruments, has been buying more than the aforementioned value of bitcoins for several months in a row. Thus, the company, which has become the largest institutional holder of BTC, has produced a kind of ”synthetic halving,” that is, a reduction in the volume of available cryptocurrency. They're not just hoarding, they're shrinking Bitcoin's supply curve externally. So yes, supply is shrinking. But the price moves when demand breaks equilibrium. And with an infinite volume of currency and a truly scarce asset, Bitcoin's next spurt won't be linear. It will be dramatic. And most likely irreversible. At the end of April, Bitcoin was up 14 percent, while Ethereum fell in price by 1.5 percent. Solana showed the best result and rose in price by 18.7 percent. Adoption of cryptocurrencies in the US Meanwhile, the North Carolina House of Representatives has passed a bill that would authorize the state to invest in digital assets - the initiative now moves to the Senate for further debate. The bill, HB92, was introduced on Feb. 10 and passed its third reading in the House on Wednesday. The document, chiefly authored by Republican Speaker Destin Hall, would allow the state to invest in qualified digital assets and consider including them in retirement plans for public employees. The bill directs the state treasurer's office to study suitable investment vehicles, propose contribution limits and develop educational materials explaining the risks of investing in digital assets. HB92 also proposes to investigate the possibility of creating a state reserve for confiscated or seized crypto assets, which would be overseen by the state Bureau of Investigation in coordination with law enforcement. On March 19, a second piece of legislation, SB 327, was filed in support of the House bill in North Carolina. This initiative would allow up to 10 percent of state funds to be channeled into Bitcoin, creating a formal reserve and enabling strategies for steaking, lending, and yield. The document, introduced by Republican Senators Todd Johnson, Brad Overkesh and Timothy Moffitt, positions Bitcoin investment as a ”financial innovation strategy” to enhance the state's economic potential. It has already passed its first reading in the Senate and has been sent to committee, where it must overcome several steps, including further readings, to become law. North Carolina isn't the only state going down the path of crypto adoption. Arizona, New Hampshire and Texas are also considering similar Bitcoin reserve legislation. At least a dozen other states are considering similar initiatives, some of which are simultaneously working on multiple cryptocurrency bills. A number of states, including Indiana and Florida, are discussing adding digital assets to the list of options for retirement systems. The bottom line The declining volume of bitcoins on exchanges and active purchases by institutional investors are creating a foundation for the next stage of market growth. Although the price is still reacting with restraint, experts have no doubts about the industry's prospects. In their opinion, the shortage of supply and growing interest on the part of the authorities and large investors in the United States will sooner or later end with a noticeable increase in the volatility of the digital asset.