Bitcoin Exchange Reserve Starts Moving Sideways As Inflow And Outflows Attain Equilibrium
As per the latest weekly report from , the percentage of the total BTC supply on exchanges looks to have ended its decline recently and is now moving sideways.The “exchange reserve” is an indicator that measures the total amount of Bitcoin stored in wallets of all exchanges.
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Looks like the value of the indicator seems to have moved sideways recently | Source:As you can see in the above graph, the metric had an all-time high back in March 2020, following which the percentage of the Bitcoin supply on exchanges went on a constant decline until May 2021, where there was a brief increase due to the selloff that month.
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This means that at the current value of the exchange reserve, an equilibrium between the inflows and the outflows has been established.The sideways trend is interesting since while the price of Bitcoin has struggled recently and macro uncertainties like the Russian-Ukraine war are looming over the market, there has been no significant increase in the indicator.
Usually, a large selloff occurs during periods as now, but as the metric still continues to go sideways, it means there has still been enough demand (that is, outflows) to counteract any inflows. This trend may be bullish for the price of Bitcoin.BTC Price
At the time of writing, Bitcoin’s price floats around $38.7k, down 13% in the past week.
BTC's price seems to have shown lesser volatility since the plunge a few days back | Source:
Featured image from Unsplash.com, charts from TradingView.com, Glassnode.com