U.S. Inflation Surges, Leading to Increased Cost of Living Concerns for Trump
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Bitcoin exchange reserves have dropped to a historical low of 2.5 million BTC, the lowest level since tracking began in 2022. This decline signals a potential supply crunch as institutional demand, particularly from exchange-traded funds (ETFs), continues to rise, according to data from CryptoQuant. Bitcoin’s price has remained resilient, stabilizing above $95,000 despite mixed investor sentiment and some ETF outflows.
On February 10, U.S. spot Bitcoin ETFs reported net outflows of $186 million, reversing previous inflows. Analysts suggest that this may not indicate a long-term trend but reflects changing market conditions. Ryan Lee, chief analyst at Bitget Research, noted signs of “seller exhaustion,” indicating reduced selling pressure alongside rising buying demand. ETF purchases are currently outpacing Bitcoin mining output by 20 times.
The shrinking supply is attributed to individual investors holding 69% of Bitcoin, limiting the available market supply. With macroeconomic factors and government-backed Bitcoin reserves gaining attention, further price increases could occur if demand continues to grow.