Analysis: Bitcoin exchange balances have risen to the highest level since June 15, effectively easing supply constraints

On-chain analysis platform Santiment pointed out that the Bitcoin exchange balance has risen to its highest level since June 15, as the supply crunch frequently mentioned in the ETF inflow narrative has basically been resolved. Data shows that the exchange BTC balance decreased from about 1.337 million coins on June 12 to about 1.304 million coins on July 28, a decrease of about 33,000 coins, or approximately 2.5%.

Subsequently, the trend reversed, and the balance rebounded after hitting a low on July 28, reaching about 1.332 million coins by August 16, with about 28,000 coins flowing back, equivalent to 84% of the previous outflow. In recent days, the supply replenishment has stabilized, with the balance stagnating around 1.332 million coins, still about 5,200 coins lower than the peak in June.

Santiment stated that this indicator can coexist with strong ETF inflows, as subscriptions can be provided by OTC desks and existing holders without needing to withdraw from visible exchange wallets. This tightening took about six weeks to form but was basically unwound in less than three weeks.