Bitcoin exchange balances sank to 2018 levels
Exchange reserves in bitcoin have been falling rapidly since 2020, regardless of market conditions, the crypto community has noticed.
Stocks of bitcoin (BTC) on cryptocurrency exchanges fell to the values of March 2018. This was noticed by Glassnode analysts in their “Twitter”. Analysts did not specify which exchanges are in question.
According to published data, as of July 2023, there were just over 2.2 million BTC left on the exchanges (~$68 billion at the current exchange rate). The last time the exchanges recorded such a shortage of bitcoin was on March 14, 2018, when the bitcoin rate in the BTC/UDS trading pair was around $9,000, according to archives Yahoo Finance.
Members of the cryptocurrency community note a whole trend to reduce the volume of bitcoin on exchanges. How noticed user @0xKadeem, bitcoin balances have been declining steadily over the past three years.
It is noteworthy that until March 2020, exchange balances in bitcoin, in general, grew. What exactly influenced the situation and who is actively withdrawing cryptocurrency from the trading floors is unclear. At the same time, market conditions, whether it be a bearish or bullish cycle, do not seem to affect the downtrend in any way.
How believes @0xKadeem, the gap between supply and demand on the exchanges leads to a lack of liquidity. With more than 90% of the entire supply of bitcoin already mined, demand for bitcoin will still be high, and the limited availability of the cryptocurrency will be reflected in the pricing of BTC, he notes.
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