Bitcoin Exchange Reserve Declines To Lows Not Seen Since Sept 2018
As pointed out by an analyst in a CryptoQuant , the BTC exchange reserve has observed further decline recently, reaching the lowest values in more than 3.5 years.The “all exchanges reserve” is an indicator that measures the total amount of Bitcoin present on wallets of all exchanges.
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The value of the indicator seems to have decreased over the past couple of years | Source:As you can see in the above graph, the Bitcoin exchange reserve has been on a downtrend since the last two years.
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The exchange reserve is often considered the “selling supply” of the crypto. With its value going down for such a large timespan now, some analysts believe it may be creating a supply shock in the Bitcoin market. Due to supply-demand dynamics, such a supply shock would be quite bullish for the price of the crypto in the long term.However, others think the lowering reserves are simply because of the market structure being redistributed, and that exchanges aren’t the only major source of selling pressure today.
Nonetheless, the reserve still trending down despite the recent struggling Bitcoin price amid uncertainty due to the Russia-Ukraine war can be a positive sign of conviction among holders.BTC Price
At the time of writing, Bitcoin’s price floats around $38.3k, up 1% in the last week. Over the past month, the crypto has gained 3% in value.
The below chart shows the trend in the price of BTC over the last five days.Looks like Bitcoin has moved sideways in the last few days | Source:
Featured image from Unsplash.com, charts from TradingView.com, CryptoQuant.com