Exchange Supply Hits 7-Year Low While ETF Demand Grows

TLDR

• BlackRock’s IBIT ETF recorded $1 billion in inflows on Monday, driving Bitcoin toward $95,500
• Bitcoin supply on exchanges hit a 7-year low, reducing selling pressure in the market
• US JOLTS data showing fewer job openings raised hopes for Federal Reserve rate cuts
• Fidelity Digital Assets considers Bitcoin “undervalued” despite recent price increases
• Altcoins like Ethereum and Cardano outperformed Bitcoin with 2% gains, suggesting increased risk appetite

Bitcoin continues to hold firm above the $95,000 level as institutional investors maintain their buying momentum. The cryptocurrency market capitalization remains steady at $3.1 trillion, with Bitcoin showing resilience despite hitting resistance near $95,500.

BlackRock’s Bitcoin ETF (IBIT) registered a massive $1 billion inflow on Monday, marking its second-largest daily inflow since launching in January 2024. This surge in institutional interest helped offset redemptions from Fidelity and Ark Invest ETFs, resulting in aggregate deposits of $591 million.

The strong demand from BlackRock could potentially encourage other market participants to increase their Bitcoin positions in coming days. Since April 22, IBIT has accumulated over $4.5 billion in net inflows and now controls about 51% of the US spot Bitcoin ETF market with over $54 billion in assets under management.

On-chain metrics support the bullish sentiment. Data from CryptoQuant shows that Bitcoin supply on centralized exchanges has fallen to a 7-year low of approximately 2.492 million BTC. Over the past week, Coinglass data recorded about 56,164 BTC being withdrawn from exchanges.

This reduction in exchange supply typically indicates investor accumulation and decreases potential selling pressure. The percentage of Bitcoin supply in profit has also exceeded 85%, though analysts caution that exceeding 90% could signal “historic euphoria” and potential correction.

US Economic Data Boosts Bitcoin Outlook

The latest US Job Openings and Labor Turnover Summary (JOLTS) report showed a sharp drop in open positions to 7.19 million in March 2025, falling below the forecast of 7.48 million. This cooling labor market data has raised expectations for Federal Reserve interest rate cuts, which typically benefit risk assets like Bitcoin.

Economic analyst Alex Kruger identified the JOLTS data as a short-term positive for Bitcoin, describing the cryptocurrency as a “risk/gold hybrid” that stands to gain from potential tariff de-escalation. However, he warned of possible market volatility in Q3 due to economic slowdown concerns.

Fidelity Digital Assets maintains an optimistic mid-term outlook for Bitcoin, noting that the asset is trending toward “undervaluation” based on their Bitcoin Yardstick metric. This measure, which compares BTC’s market cap to its hashrate, suggests Bitcoin is currently “cheaper” relative to the security of its network.

The investment firm also pointed out that Bitcoin is in an “acceleration phase” where rallies to new all-time highs are not uncommon. Illiquid supply has increased from 61.50% to 63.49%, while liquid supply fell by 4%, indicating more holders are committed to long-term positions.

Altcoins Show Strength

While Bitcoin price movement has slowed somewhat, altcoins have begun to outperform the market leader. After a week of consolidation, major altcoins broke above key resistance levels on Tuesday.

Ethereum and Cardano each posted 2% gains, outpacing Bitcoin’s modest 0.6% increase. This rotation of capital into altcoins suggests growing investor risk appetite in the cryptocurrency market.

Among the top 20 cryptocurrencies, Bitcoin Cash (BCH) led gains with a 6% rally, possibly benefiting from increased interest in privacy coins amid ongoing Monero (XMR) controversies. Hyperliquid, a prominent Real World Asset protocol, showed even stronger performance with an 18.4% gain, indicating rising demand for tokenized instruments.

Circle, the company behind the USDC stablecoin, has received approval from Abu Dhabi’s Financial Services Regulatory Authority to expand operations across the Middle East and Africa. This regulatory clearance advances Circle’s strategy to promote stablecoin adoption in emerging markets.

Additionally, decentralized exchange aggregator 1inch has launched its Fusion protocol on Solana, enabling MEV-protected token swaps for over one million Solana-based assets. Following strong DeFi activity on Solana in Q1 2025, 1inch plans to develop cross-chain swap functionality connecting Solana with ten other networks.

As Bitcoin tests the $95,500 level, many analysts maintain positive outlooks. Matrixport suggests Bitcoin’s upward momentum is strengthening and approaching the $106,000 resistance level, while Willy Woo believes Bitcoin’s fundamentals have shifted to a bullish state.

A recent Coinness report revealed that 45.4% of South Korean investors expect Bitcoin to outperform gold in the next six months. Meanwhile, ARK Invest maintains its long-term forecast that Bitcoin’s price could reach $2.4 million by 2030, driven by ETF growth and increasing institutional adoption.

Bitcoin currently trades at $95,200, with investors closely watching for a potential breakout above the $100,000 psychological barrier.