The total supply of Bitcoin and Tether on significant crypto exchanges has been reducing for the past few months. It indicates users are moving their funds to their private wallets from the exchange’s wallets. As per a report from crypto analytics platform Santiment, there is a steady drop in the volume of Bitcoin.
Bitcoin plummets terribly after touching a critical resistance of $45,000. BTC has declined more than 7% within the last 24 hours, leading to a bearish wave through the crypto market. Major cryptocurrency’s price shreds up to 10%.
The on-chain analysis draws an optimistic view for Bitcoin price future movement, a reduction in supply at crypto exchanges leads to reduced liquidity and consequently pushes the prices upward.
The change in Bitcoin supply on exchanges is not sudden. As per the social and on-chain metrics, it is reducing for a while. However, the change in the supply of Tether (USDT) is dramatic. It is attributed to the new law passed in the Swiss city of Lugano, where BTC along with USDT would be a legal currency along with the Swiss Franc.
Citizens of Lugano could use Tether and BTC for all public services payments, including taxes and tuition fees. It has led to a likely accumulation of USDT and resulted in reduced supply on exchanges.
USDT is also in the limelight for the past few days, with a significantly increased volume by Russians. With declining Ruble due to many sanctions imposed by the US and the European Union, Russias are attracting towards the crypto to avoid value degradation of their funds.