The Supply Shock is coming: Huobi exchange‘s Bitcoin balance has dropped from 410k BTC in 2020 to now just 26k BTC.

After the bullish XRP news here is something more to talk about: We all always keep talking of a possible “Supply Shock“, especially as the Bitcoin supply is so scarce and real HODLERs wont just give their coins away. With a scarce supply and slow supply growth due to the Halvings, exchanges will sooner or later run out of supply for the increasing demand during bull markets. Even now exchanges only have 2.26M BTC left.

The worst one off is clearly Huobi though, the 14th biggest Crypto exchange. While all exchange had to face a decreasing demand and thus a decreasing revenue. Especially, the Bitcoin Balance on Huobi has been ina complete downfall since 2020.

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BTC Exchange Balance on Huobi that has been in a literal free fall, by Willy Woo on Twitter

In 2020 the Huobi Exchange had a balance of 410k BTC for trading and now just three years later that balance has fallen to measly 26k BTC. That is a 93.6% decline of the balance, for an exchange that is supposed to be operational during the highest demand that is not a good look at all. Even the USDT and ETH balances had even sharper declines from 2021 highs.

Huobi exchange balances all over the board have experienced at least -90% drawdowns from 2020/2021 highs and in the event of a new bull market it is very questionable how they should survive the increasing demand, this may be the first case of a Supply Shock in front of our eyes.

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ETH balance on Huobi in an even bigger free fall, chart by Willy Woo on Twitter