Bitcoin (BTC) analysis now doubts the relevance of exchanges’ BTC balances as 140,000 Mt. Gox coins line up for release.

In a post on X (formerly Twitter on June 24, popular commentator Matthew Hyland described decreasing exchange supply as “overrated.”

Bitcoin exchange balances at six-year lows

Crypto exchanges’ aggregate BTC balances are at multi-year lows. Traditionally, this is considered proof of demand taking off, but not everyone is so sure.

For Hyland, the correlation between supply fluctuations and BTC price performances leaves a lot to be desired.

“The supply aspect IMO is overrated,” he summarized alongside a chart comparing exchange availability to BTC/USD.

“BTC on exchanges dropped during the entire bear market yet, BTC price continued down with it. Long term it matters but within multi-years it has shown it does not.”

Data from on-chain analytics firm Glassnode, which tracks the balances of 31 major trading platforms, puts the total number of coins currently available for purchase at 2,317,495 BTC as of June 24.

This is an increase of approximately 18,000 BTC over the past ten days, marking the latest multi-year aggregate balance low. The last time that exchanges had a similarly small amount of BTC available was in March 2018.

Mow: Mt. Gox sale will have "minimal impact"

The picture may soon change — but consensus is lacking over for the better or worse.

Related: Can $60K BTC price support hold? 5 things to know in Bitcoin this week

As Cointelegraph reported, the bankruptcy proceedings of defunct exchange Mt. Gox, which involve 140,000 BTC worth nearly $9 billion, are due to draw to an end in July.

This will involve sending those funds to users who originally lost them, and opinions are split as to whether this will result in a mass distribution event.

“It can’t be positive that’s for sure,” popular trader Bob Loukas wrote during an X discussion this week.

Some believe that the Mt. Gox announcement played a part in BTC/USD hitting its lowest levels in nearly two months this week, but this topic is also contested.

“There isn't a massive ‘dump’ from Germany or Gox,” Samson Mow, CEO of Bitcoin adoption firm JAN3, responded, referencing recent movements of confiscated BTC owned by the German government.

“Right now this Bitcoin dip is purely sentiment and fear driven, not from selling of large holdings. Even when Gox coins come to market, if there are sales, they will likely be via OTC and will have minimal impact on price.”

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.