Bitcoin Exchange reserves are falling very fast.
There has been a massive outflow of BTC from exchanges to unknown wallets. This has brought the BTC balances on exchanges to the lowest in a long time. The last time such levels were recorded was over 3.5 years ago, meaning there is a strong positivity around the asset.
Data shows that the Last Time Bitcoin Supply On Exchanges Was That Low, BTC Was At $7,200.
The last time #Bitcoin Supply on exchanges was this low, the price was $7,200! ? pic.twitter.com/hyxmby7aya
— Bitcoin Archive ??? (@BTC_Archive) April 6, 2022
Yellow block also confirms that Bitcoin supply on exchanges is diminishing and creating lower lows.
$BTC – Exchange Reserve
Bitcoin supply on exchanges is diminishing and creating lower lows. pic.twitter.com/aomABjYYVJ
— YellowBlock (@YellowBlock_io) April 6, 2022
What this means for Bitcoin
It is usually good for retail or institutional investors to accumulate Bitcoin, eventually leading to price gains. This is the likely outcome as investor confidence continues to build up, and the drop in the asset’s price since January may soon be over if this bullish trend is sustained. The Mid-halving event is coming in a few days, and it will be interesting to see how things play out for the most prominent cryptocurrency.
Falling BTC exchange reserves also limit the possibility of a sharp BTC fall. This is usually a very positive sign where investors trust the asset and try to keep it for the long term away from exchanges.
The fact can be seen by the strong buying of BTC from Microstrategy and Terra LLG. Today Terra Foundation (LFG) added another 3,964 BTC to its reserve. The foundation recently transferred 231.4 million USDT to Binance to buy more Bitcoins and now has well over 35,000 BTC in its reserve.
Yesterday MicroStrategy purchased 4,167 BTC for $190.5m at an average price of $45,714. MicroStrategy holds 129,218 BTC acquired for $3.97b at an average price of $30,700. Previously, MicroStrategy, a subsidiary of MicroStrategy, announced a $205m bitcoin-backed loan with Silvergate Bank.
Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
-Advertisement-
