Arab Chain
Bitcoin Exchange Supply Ratio on Binance Declines After Fed Rate Cut
The latest data from Binance, the exchange with the highest Bitcoin trading volume, indicates that with the recent Federal Reserve interest rate cut—which typically leads to increased risk appetite in the markets liquidity is improving, pushing investors toward riskier assets like Bitcoin. The Exchange Supply Ratio for Bitcoin has declined, returning to level 0.0291, indicating that investors are taking a long-term view by withdrawing Bitcoin from exchanges in preparation for holding rather than selling. This behavior reflects growing confidence that the Federal Reserve's monetary policy will remain supportive of liquidity, which could reduce selling pressure on Bitcoin at the present time. This correlation shows that the reduced supply available for sale on exchanges is creating relative buying pressure, while price stability above 115K supports this trend. The current situation suggests that the market may target 120K if outflows from exchanges continue in conjunction with the liquidity driven by the Federal Reserve's decision. The continued decline in the Exchange Supply Ratio for Bitcoin, coupled with a rising price, reinforces the bullish scenario, especially if traditional markets stabilize after the Fed's decision. Conversely, if the Exchange Supply Ratio turns upward again (i.e., if Bitcoin reenters exchanges), it could signal that investors are preparing to take profits at levels near 118K–120K.