This sudden rise in the price of bitcoin has triggered a shock for the amount of Bitcoin available on exchanges.
As you well know, there is a large part of the Bitcoin supply that is stored in cold wallets, and therefore is not available for the market.
If we take into account the amount of Bitcoin that is stored in Exchanges, we can see a continuous decline in its supply.
This means that the amount of Bitcoin that is easily tradable is decreasing very rapidly. This causes more people to want to get Bitcoin before the price rises, creating a spiral that is very difficult to stop.
Let's take a look at the chart provided by Glassnode:
As you can see there are 2,400,000 in the Exchange's balance, this is a 20% decline from the March highs of 3,000,000.
And there is more, as you can see in the chart this decline is accelerating. The speed of the decline is accelerating and I could assume that things can get worse in the future.
Well, worse is not the correct word for the Bitcoin HODLers. For them this thing can be a blessing, if this trend doesn't stop it is very likely that the price will keep rising.
I have mixed feelings about this approach to the ATH. From one part I think that it is still too early to break it, but the market doesn't think the same.
Very exciting days ahead!