Since the introduction of spot exchange-traded funds (ETFs) in the United States, approximately $10 billion worth of Bitcoin has been withdrawn from crypto exchanges. Data from Glassnode reveals that exchanges have seen a reduction of over 136,000 BTC since January 11.

This trend indicates a continuous shift in Bitcoin supply dynamics favoring bulls, with major trading platforms witnessing significant withdrawals. As of March 28, Coinbase's tracked exchange holds the lowest balance of 2,320,458 BTC since April 2018. Withdrawals remain high, with over 22,000 BTC ($1.54 billion) withdrawn on March 27 alone, marking the third-largest daily withdrawal in 2024.

Market analysis also highlights a substantial transfer of stablecoin USD Coin (USDC) to Coinbase, the largest U.S. crypto exchange, which suggests significant buying pressure. The long-term impact of ETFs on BTC supply and price is a growing concern among market observers.

Some anticipate a supply squeeze within the next six to twelve months, driven by ETF buying outpacing the newly mined BTC available for sale each day.

Additionally, with the upcoming block subsidy halving event in mid-April, the supply growth rate of BTC will decrease further, making Bitcoin even scarcer than gold. This scenario, combined with institutional demand via ETFs, sets the stage for significant developments in April.