Report Shows Bitcoin and Tether Supply on Exchanges Records a Large 30-day Drop

A report by Santiment shows that the supply of both Bitcoin (BTC) and Tether (USDT) on leading exchanges has been falling steadily in the past month.

Drop In Supply Might Hint at Upcoming Price Rise

Analysts suggest that the drop in supply of Bitcoin on exchanges should be taken as a signal for an imminent push back above $45k by the world’s most valuable cryptocurrency. According to the on-chain and social metrics analysis website, Bitcoin’s waning supply in exchanges has been going on for a while now. However, in the case of Tether, the decrease in supply is a relatively new development that started earlier in February. In the past, a drop in the supply of tether was usually linked to large-volume Bitcoin traders pulling funds out of exchanges to ease the selling pressure on Bitcoin. This action, more often than not, resulted in Bitcoin recording a vertical price increase.

Lugano Angling to Become Europe’s Crypto Capital

The drop in the supply of Bitcoin and Tether in exchanges also comes amid reports that the city of Lugano plans to establish a number of digital currencies, including Bitcoin and Tether, as legal tender. The Swiss city, with a population of more than 62,000, will allow residents to pay for taxes, tuition fees, and public service fees using both Bitcoin and Tether. Additionally, the city will build a physical hub to house crypto and blockchain startups. The city will also set up a multi-million dollar fund to help finance those startups.

Russia’s Invasion of Ukraine Might Speed Bitcoin Adoption

Meanwhile, Russia’s continuing war with Ukraine is shining an unlikely spotlight on cryptocurrencies. There is speculation that Russia might resort to using Bitcoin in order to bypass sanctions slapped against it by the United States and the European Union (EU). Ukraine has already received more than $45 million in financial aid from people around the world in the form of crypto. An unintended consequence of the war may be greater recognition of cryptocurrencies as valid forms of investment and transactions.

Bitcoin and Tether’s Performance in the Market

While 2022 has been a difficult year for the crypto asset markets, the drop in the exchange supply of Bitcoin and Tether might point to these crypto giants gradually bucking market trends. At the time of writing, Tether was priced at $1.00 and recorded trading volumes of $63.2 billion in the last 24 hours. The token had a live market cap just north of $79.5 billion, making it the most valuable stablecoin and the third biggest cryptocurrency in general. On the other hand, Bitcoin is currently trading at $41,723, which is a 3.77% drop from previous figures. The token recorded trading volumes of $28.9 billion in the past 24 hours, and its live market cap of close to $791 million makes it the world’s biggest cryptocurrency by a large margin.