Bitcoin Exchange Reserves Plummet to All-Time Low – Why This Might Not Be Bad
Bitcoin exchange reserve recorded its lowest value ever, which should represent a bullish development. However, the recent activity of the stablecoin reserve highlights a point of concern.
Exchanges Now Hold Only 13% Of BTC Supply – Details
In a Quick post on CryptoQuant, APTRekt reports that only 2.72 million BTC are now available in crypto exchanges. This record amount represents 13.60% of the circulating BTC supply and is the lowest amount in Bitcoin exchange reserves. APTRekt says that Bitcoin reached these new record lows on the exchange despite heavy selling pressure between Wednesday and Thursday, caused by a failed price breach at the $75,000 area.
In general, an increase in exchange deposits indicates an increase in the willingness of investors to load their assets into the market. Conversely, the decline in exchange reserves is considered a positive development, indicating that investors are choosing to move their holdings to private wallets, indicating long-term confidence and anticipation of price appreciation.
Therefore, the new decrease in Bitcoin exchange reserve should be considered as a bullish event. However, the parallel development in the stablecoin market paints another negative picture. Notably, the reserves of the Stablecoin exchange were estimated at $ 68.8 billion on March 18. However, the current figures are reported to be around $ 68.2 billion, which highlights the withdrawal of about 600 million within 48 hours.
A similar flash transaction last took place between January 18 and January 21, before the massive withdrawal from the cryptocurrency market. According to APTRekt, Bitcoin usually experiences a major downturn during such releases, which puts the major cryptocurrency at risk of another price drop if the historical pattern plays out.
Bitcoin Whale Wallets Rise By 753 Despite Price Struggles
In other news, data from Santiment reveals that market whales, that is, wallets holding 100 BTC or more, have increased by more than 753 over the past three months. Notably, this bullish development comes during a long correction phase where the flagship cryptocurrency traded as low as $60,000 with a net market loss of 20.2%.
Santiment explains that this rallying trend is one of many divergent trends amid short-term price volatility, which also reflects continued confidence among Bitcoin’s biggest investors. At press time, Bitcoin is valued at $70,600 after losing 0.05% and 0.5% on the daily and weekly charts, respectively. Meanwhile, the digital asset reports a huge gain of 5.95% in the last 30 days, suggesting that the market action has been very positive in recent weeks.
Featured image from iStock, chart from Tradingview
Planning process because bitcoinist focuses on delivering well-researched, accurate, and unbiased content. We maintain strict sourcing standards, and each page is diligently reviewed by our team of senior technical experts and experienced editors. This process ensures the integrity, relevance, and value of our content to our readers.
