Bitcoin Exchange Reserve Has Now Reached An Equilibrium After 2 Years Of Downtrend

2022-3-9 22:00

On-chain data shows the percentage of Bitcoin supply on exchanges seems to have plateaued over the past few months, ending an overall downtrend that lasted about two years.

Bitcoin Exchange Reserve Starts Moving Sideways As Inflow And Outflows Attain Equilibrium

As per the latest weekly report from Glassnode, 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.

When the value of this metric rises, it means exchanges are observing net inflows right now. Such a trend can be bearish for the price of the coin as it represents an increase in the sell supply of the crypto.

On the other hand, when the reserve’s value decreases, it implies outflows are overwhelming the inflows at the moment. This trend may turn out to be bullish for the value of Bitcoin as it may be a sign of accumulation from holders.

Related Reading | Risk Aversion Pulls Crypto Market Down, Bitcoin Still Below $40K

Now, here is a chart that shows how the percentage of the total supply that the exchange reserve accounts for has changed over the past couple of years:

Looks like the value of the indicator seems to have moved sideways recently | Source: Glassnode's The Week Onchain - Week 10, 2022

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.

Soon after, the indicator did resume the downtrend, but following September 2021 the metric has mostly consolidated sideways.

Related Reading | Goodbye, Russia – A Number Of Goldman Sachs Employees Are Leaving Russia To UAE

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: BTCUSD on TradingView Featured image from Unsplash.com, charts from TradingView.com, Glassnode.com

Similar to Notcoin - TapSwap on Solana Airdrops In 2024

origin »

Bitcoin (BTC) на Currencies.ru

$ 71231.34 (+0.45%)
Объем 24H $51.853b
Изменеия 24h: 6.21 %, 7d: 15.59 %
Cегодня L: $68995.48 - H: $71441.63
Капитализация $1403.496b Rank 1
Цена в час новости $ 41589.17 (71.27%)

bitcoin supply percentage exchanges sideways moving years

Источник: newsbtc.com

bitcoin supply → Результатов: 126


Фото:

Bitcoin (BTC) sell pressure eases as M2 money supply flips, former BitMEX CEO sees gradual recovery

There are signs that Bitcoin (BTC) is headed for potential relief from the selling pressure it has faced in recent weeks. The M2 money supply, a crucial economic indicator, has flipped positive for the first time since November 2022, hinting at a shift in investor sentiment towards assets like Bitcoin. In addition, prominent crypto market […]

2024-5-4 14:12


Фото:

Bitcoin HODLers Grows As Significant Supply Remains Locked

Despite a larger portion of Bitcoin’s total supply being “inactive” for over a year, recent data revealed impressive growth in investors holding on to their BTCs during the rally. Bitcoin HODLing Yawns For Growth With Lesser Supply On Wednesday, November 15, a crypto analyst known as Root took to his official X (formerly Twitter) handle to share valuable data concerning Bitcoin.

2023-11-17 19:00


Фото:

This Could Be The Metric To Watch For A Bitcoin Bounce: Santiment

On-chain data from Santiment suggests that the stablecoin whale supply could be the metric to watch for the likelihood of a Bitcoin bounce. Whale Supply Of Stablecoins Could Hold Key To Bitcoin Rebound In a recent post on X, the on-chain analytics firm Santiment discussed the percentage of the total stablecoin supply that the whales in the sector are holding right now.

2023-9-4 17:30


Bitcoin exchange supply maintains the drop, but will BTC’s resurgence change its fortune

Supply on centralized exchanges remains depleted despite an increase in Bitcoin network activity. Bulls might need to keep a cool head as 30-day SMA addresses had not finalized surpassing the 3The post Bitcoin exchange supply maintains the drop, but will BTC’s resurgence change its fortune appeared first on AMBCrypto.

2023-1-19 05:30


BTC Supply Drying Up, 6.3% Of Total Bitcoin Supply Left On Exchanges

Bitcoin’s circulating supply has fallen near the end of 2021, with December representing the lowest month on average in years for Btc supply. 6. 3% Of BTC On Exchanges The amount of Bitcoin in circulation has been falling since the halving in 2020, according to a new study from CryptoRank, with access to acquire Bitcoin on exchanges also declining.

2021-12-27 18:20


дальше еще 77 новостей →

Партнеры Currencies.ru

Реклама на Currencies.ru

Самое свежее на Currencies.ru

Bitcoin “Profit-Taking Has Completed,” Top Analyst Reveals

An analyst has explained how profit-taking looks to have finished for Bitcoin in what has been a “very healthy reset” for the market. Bitcoin SOPR Suggests Profit-Taking From Investors Has Cooled Off In a new post on X, analyst Willy Woo has discussed about the latest trend occurring in the Bitcoin Spent Output Profit Ratio (SOPR).

4 Key Reasons Why The Bitcoin Bull Run Is Far From Over

In an analysis shared via X, renowned crypto analyst Ted (@tedtalksmacro) has provided compelling evidence to support his assertion that the current Bitcoin bull run is far from over. Ted’s insights are based on four critical indicators related to traditional finance and crypto liquidity, each pointing to sustained growth in the near future.

Bitcoin Not Out Of Danger Yet, NVT Golden Cross Warns

On-chain data shows the Bitcoin Network Value to Transactions (NVT) Golden Cross still has a high value, a sign that may be bearish for BTC. Bitcoin NVT Golden Cross Is Still Near Historical Top Zone In a CryptoQuant Quicktake post, an analyst discussed the recent trend in the NVT Golden Cross for BTC and its implications for the price.

Bitcoin Hash Ribbons Form Capitulation Signal: What It Means

On-chain data shows the Bitcoin Hash Ribbons have recently gone through a crossover. Here’s what it could mean for the cryptocurrency. Bitcoin Hash Ribbons Suggest Miner Capitulation Is On As explained by CryptoQuant community manager Maartunn in a Quicktake post, miners are capitulating right now if the Hash Ribbons indicator is to be believed.

Bitcoin Deja Vu: Indicator Mirrors Pattern That Led To 2021 Top

On-chain data suggests a Bitcoin indicator is currently mirroring the same trend that led to the top of the bull run in 2021. Bitcoin Long-Term Holder Distribution Appears To Be Ending As explained by CryptoQuant community manager Maartunn in a post on X, the BTC long-term holders are currently showcasing a trend that’s reminiscent of […]

Bitcoin HODLer Profit-Taking Calms Down After Wild Selling Spree: Green Sign For Rally?

On-chain data shows the Bitcoin long-term holders have finally cooled off their profit-taking after showing a wild selloff just earlier. Bitcoin Coin Days Destroyed Has Calmed Down For BTC Recently As pointed out by BTC on-chain research account “The Bitcoin Researcher” in a post on X, the Coin Days Destroyed In Profit metric has declined […]

Bitcoin Supply Shock: Exchange Inflow Trend Lowest Since 2015

On-chain data shows the Bitcoin exchange inflow trend has been at its lowest in almost a decade recently, a sign that may be bullish for the asset. Bitcoin Exchange Inflows Have Been On The Decline Recently As pointed out by CryptoQuant author Axel Adler Jr in a post on X, the BTC exchange inflows have […]