On-chain information programs Bitcoin exchange reserves continue to decrease despite the current dips, as values reach lowest since 2018.
Bitcoin Exchange Reserves Continue To Go Down
As pointed out by a CryptoQuant post, the BTC all exchanges reserve is moving down despite the recent downtrend in the price of the cryptocurrency.
The Bitcoin all exchanges reserve is a sign that reveals the overall quantity of coins hung on all centralized exchange wallets. A dip in the value of the metric suggests investors are transferring their BTC to personal wallets, either for holding or for selling through OTC deals.
On the contrary, a boost in the sign indicates financiers are sending their coins to exchanges for withdrawing to fiat and stablecoins, or for buying altcoins.
Here is a chart showing how the Bitcoin exchange reserve has changed over the years:
As you can see from the above chart, the BTC all exchanges reserve has actually struck lows not seen since 2018. Usually, during periods of big price swings, the indicator’s value shows a spike as investors look to shift their positions in the market.
However, despite the current dips, the metric has actually just been trending downward. What’s the reason behind this? Well, one possible circumstance might be that there are now more long-lasting holders in the market that are awaiting the rate to value even more prior to they make any relocations.
A downtrend in the exchange reserve is often a bullish indicator as it shows buyers are accumulating Bitcoin, while an uptrend could lead to crashes in the crypto.
Below is another chart that reveals the BTC netflow sign over the last number of days.
The netflow indicator measures the net number of coins exiting or entering exchanges. As appears from the above chart, the metric had a huge unfavorable spike the other day, which indicates a big quantity of BTC was managed exchanges.
BTC Price
Yesterday, Bitcoin’s rate crashed down to $40k after peaking simply listed below $49k a couple of days back. But the price has since jumped back a bit as it floats around $43k at the time of writing. The crypto is down 7% in the last 7 days, while over the previous thirty days, the worth is 11% less.
Here is a chart showing the trend in the price of the coin over the last five days:
