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Bitcoin (BTC) Balances on Exchanges Drop to New Historic Lows

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Fri, 11/26/2021 - 15:11
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Vladislav Sopov
Seasoned crypto expert Lark Davis registers one interesting metric amidst ongoing bloodbath
Bitcoin (BTC) Balances on Exchanges Drop to New Historic Lows
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The net number of Bitcoins (BTC) stored on the wallets of centralized cryptocurrency exchanges is one of the crucial on-chain metrics for the flagship cryptocurrency.

Bitcoin (BTC) reserves on exchanges are targeting three-year lows

Lark Davis, seasoned cryptocurrency evengelist and investor, shared charts that display the dynamics of Bitcoin (BTC) reserves of centralized exchanges in correlation to its price.

As per this chart derived from the data of top-tier on-chain data vendor Glassnode, this crucial metric is in a downtrend since the third reduction of Bitcoin emissions in May 2020.

This process stopped only in early Q3, 2021, when a number of holders decided to cash out their rewards. However, the BTC balance on exchanges has been plummeting again since August 2020.

Right now, it is significantly lower than in early 2019. For the first time in almost 40 months, BTC balances on exchanges dropped below 2.5 million Bitcoins.

Bitcoin (BTC) plunges to $53,500 as bloodbath intensifies

Mr. Davis interprets these dynamics as clear bullish sign. Typically, the reduction of BTC balances on CEXs is associated with the lack of interest in immediately selling coins.

As covered by U.Today previously, today, Bitcoin (BTC) dropped to an eight-week low. Its price briefly touched $53,500 level unseen since Oct. 7.

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$670 Million Worth of BTC Orders Liquidated in Last 24 Hours

More than $670 million in Bitcoin (BTC) shorts and longs have been liquidated in the last 24 hours. For many analysts, today's situation resembles the dramatic circumstances of March 2020.

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About the author

Blockchain Analyst & Writer with scientific background. 6+ years in IT-analytics, 3+ years in blockchain.

Worked in independent analysis as well as in start-ups (Swap.online, Monoreto, Attic Lab etc.)