Bitcoin News

Story: Bitcoin Exchange Supply Ratio Drops After Fed Cut, Eyeing $120,000

By James Thorp

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Declining Exchange Supply Ratio Signals Holding Trend. The Exchange Supply Ratio (ESR) measures the proportion of BTC held on exchanges relative to the…

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BTC Targets $120,000. If current trends continue, Arab Chain suggests Bitcoin may soon test the $120,000 resistance level.

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Supply Crunch and Scarcity Index. Crypto analyst Titan of Crypto echoed similar sentiments, highlighting that BTC is currently…

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Market Sentiment and Whale Activity. Despite the positive technical indicators, some concerns remain.

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Implications for Traders and Investors. The current environment suggests several takeaways for both short- and long-term market…

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The U.S. Federal Reserve’s recent decision to cut interest rates by 25 basis points has reignited investor enthusiasm across risk-on assets, including Bitcoin (BTC).

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Data from CryptoQuant contributor Arab Chain highlights that Bitcoin investors are responding to the Fed’s move by withdrawing BTC from exchanges.

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Arab Chain noted that the combination of the Fed’s rate cut and declining ESR is creating favorable conditions for Bitcoin price stability.

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Recent charts show BTC maintaining a level above $115,000, with liquidity continuing to flow into digital assets.

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However, the analyst also cautioned that if the Exchange Supply Ratio rises again—indicating Bitcoin returning to exchanges—this could signal profit-taking at levels around…

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Crypto analyst Titan of Crypto echoed similar sentiments, highlighting that BTC is currently positioned below the bearish fair value gap on the daily chart.

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The declining exchange supply ratio is contributing to a potential supply crunch scenario, where limited active circulating supply could intensify upward price pressure.

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Outflows from Binance continue at a rapid pace, further reducing active BTC supply available for trading and strengthening the bullish narrative for long-term holders.

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Despite the positive technical indicators, some concerns remain. Notably, recent price movements have seen limited participation from large Bitcoin holders, or whales.

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As of the latest trading data, BTC was priced at $116,374, reflecting a slight 1.3% decline in the past 24 hours.

The Currency Analytics

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