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Bitcoin supply on exchanges is at its lowest since January. 

This is reported by Santiment, which published a chart clearly showing the downward trend that started in mid-April, i.e. more or less at the same time as the price ATH. 

The supply of bitcoin on exchanges generally increases when BTC are transferred to exchanges to be sold. 

Until October of last year, it was very high, but as the price increased it started to drop significantly, hitting two lows in November and early January. 

Then, with the incredible increase in price from $30,000 to almost $65,000, it was back on the rise, until mid-April. 

The peak of this phase, however, was reached in mid-May, i.e. before the flash crash on 19 May, probably an indication of panic selling. 

Since then the panic seems to have dissipated, so much so that yesterday the lowest peak of this phase was reached, only slightly higher than the lows of November and January. 

According to Santiment, the supply of BTC on exchanges is now close to the lows of 2021, while the supply outside of exchanges has reached a level last seen in November 2018. 

This implies a lower risk of sell-offs at this time. 

The current situation in this respect looks very different, if not opposite, to the one before the flash crash on 19 May, which took the price to $30,000 for the first time since late January. 

Since then the price of bitcoin has continued to oscillate in a band between $30,000 and $40,000, and then between $30,000 and $35,000. 

As the risks of sell-offs currently seem to be lower, it is unlikely that a similar dynamic to that of the second half of May will be repeated. 

On the contrary, this should generally be interpreted as an accumulation scenario, as also suggested by the growth of BTC held by whales, i.e. a time when those who buy bitcoin on exchanges do so in order to withdraw them and store them in the medium/long term in proprietary wallets. 

In fact, if nothing happens to drastically change things, this is a bullish scenario, or at least a situation of relative stability that suggests future growth assumptions, perhaps even in the short term. 

However, 2021 has accustomed us to big and sudden changes, so there is still a likelihood that something could suddenly disrupt the current scenario. 

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