Key takeaways:
September’s 44,000 BTC net withdrawals reduced the available supply, easing the potential short-term selling pressure.
US-listed spot Bitcoin ETFs added $2.2 billion, delivering persistent daily demand that far exceeds the mined supply.
Bitcoin (BTC) has traded in a narrow 2.3% range since Friday as investors await the United States Federal Reserve’s interest rate decision on Wednesday. While the immediate impact of an interest rate cut on Bitcoin remains uncertain, three independent factors are supporting further BTC price gains.
Estimate: total amount of Bitcoin held on exchange addresses, BTC. Source: Glassnode
The sharp decline in BTC held on exchanges has become critical for short-term price formation. Glassnode estimates a net withdrawal of 44,000 BTC in September alone, reversing the high deposit activity from July. With fewer coins readily available, immediate liquidity is tighter, which could limit short-term selling pressure near the current $116,000 price level.
Reduced BTC supply, growing spot Bitcoin ETF demand
Some argue that the 2.96 million BTC still held on exchanges is enough to absorb buying volume. However, this view overlooks the fact that a large portion of those coins are not offered on order books. Many clients keep Bitcoin deposits on exchanges due to concerns about self-custody or to benefit from features like yield opportunities or reduced fees.
US-listed Bitcoin ETF daily net flows, USD. Source: CoinGlass
Additional support at the $115,000 mark comes from ongoing accumulation through spot Bitcoin exchange-traded funds (ETFs). This trend has helped restore investor confidence after gold’s 11% outperformance since August. US-listed Bitcoin ETFs recorded $2.2 billion in net inflows between Wednesday and Monday, representing daily buying pressure more than 10 times greater than the amount of new Bitcoin mined each day.
Eric Trump’s CNBC interview on Tuesday drew attention to Bitcoin’s unique qualities. US President Donald Trump’s son is personally invested as the co-founder of the Bitcoin mining and treasury management company American Bitcoin (ABTC). Eric Trump said…
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