Bitcoin Supply on Exchanges Hits 7-Year Low, Fund Inflows Reach $3.2 Billion

Bitcoin's supply on centralized exchanges (CEX) has reached a seven-year low, with the current reserve standing at 2.492 million BTC. This figure represents a significant decrease from the previous week, where the supply was at 2.488 million BTC. The last time the exchange platform reserve was this low was in October 2018.

According to a report by CoinShares, Bitcoin fund inflows reached $3.2 billion as of the week ending on April 28th. This influx, combined with the decreasing exchange balances, suggests that a new phase of accumulation is imminent. The report also highlights that retail investors have played a more significant role in the recent rally compared to previous weeks. This trend is evident in the "Exchange Whale Ratio," which has decreased from 0.512 on April 17th to 0.36 on April 27th.

The decrease in the Exchange Whale Ratio indicates that large investors, or "whales," are holding onto their Bitcoin rather than selling, which could be a bullish sign for the market. The combination of decreasing exchange balances and increasing inflows suggests that more investors are choosing to hold their Bitcoin rather than trade it, which could lead to a supply shortage and potentially drive up the price.

However, it is important to note that the increase in the exchange platform reserve by about 40,000 BTC over the weekend could indicate that some investors are moving their Bitcoin back onto exchanges to sell. This could potentially offset the bullish signals from the decreasing exchange balances and increasing inflows.

Overall, the current situation suggests that Bitcoin is entering a new phase of accumulation, with retail investors playing a larger role in the market. However, it remains to be seen whether the recent rally will continue or if the increase in exchange platform reserve will lead to a sell-off.