According to the analytical company CryptoQuant, Bitcoin reserves on cryptocurrency exchanges have dropped to their lowest level in the last three years – to 2.38 million BTC at a price of more than $ 64,000 per coin.
BTC exchange reserves are an indicator that displays the total amount of bitcoins that are stored in the wallets of all centralized cryptocurrency exchanges. A decrease in this value indicates that bitcoin holders are transferring them to personal wallets for further storage or OTC transactions. The increase in bitcoin exchange reserves means that investors are transferring their bitcoins to exchanges to exchange for fiat currencies or buy altcoins.
Based on the CryptoQuant chart, the stocks of bitcoin on exchanges began to “deplete” at the end of July, when the bitcoin rate began to recover after falling below $ 29,000. On October 19, exchange reserves in bitcoins reached a three-year low, dropping to 2.38 million BTC. And in the morning, the bitcoin rate rose to $ 64,500, not reaching $ 400 to the current all-time high. With more long-term Bitcoin holders withdrawing their coins from trading platforms on the market, the risk of a massive Bitcoin sell-off is decreasing. This could signal a continuation of the bullish trend.
North American mining companies could have played an important role in reducing exchange reserves in bitcoins. In September, the total amount of bitcoins stored in their wallets hit a record high of nearly 18,000 BTC. Marathon Digital turned out to be the leader in terms of the volume of stored BTC among mining companies – in August it managed to increase its reserves to 6,225 BTC.
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