Disclaimer: The opinions expressed by our writers are their own and do not represent the views of U.Today. The financial and market information provided on U.Today is intended for informational purposes only. U.Today is not liable for any financial losses incurred while trading cryptocurrencies. Conduct your own research by contacting financial experts before making any investment decisions. We believe that all content is accurate as of the date of publication, but certain offers mentioned may no longer be available.
Analytics data company Glassnode has reported that Bitcoin balances across multiple digital exchanges have declined to a three-year low.
Bitcoin exchange reserves face a major decline
Reserves of the flagship digital currency across centralized crypto exchanges have made a drop to a lowest level in three years, now totaling 2,506,201.373 BTC.
That is more than 300 fewer coins since Feb. 13, when balances on exchanges comprised 2,506,583.557 coins.
? #Bitcoin $BTC Balance on Exchanges just reached a 3-year low of 2,506,201.373 BTC— glassnode alerts (@glassnodealerts) February 14, 2022
Previous 3-year low of 2,506,583.557 BTC was observed on 13 February 2022
View metric:https://t.co/9vOOAmwh32 pic.twitter.com/VdkLhZvDSq
Another on-chain data collector—Santiment—tweeted on Saturday that Bitcoin reserves on crypto exchanges had dropped to their lowest since December 2018, when crypto winter was in full swing.
According to the tweet, Bitcoin reserves on exchanges had shrunk to 10.87% after the decline, which followed a series of consecutive BTC price drops. At the start of the weekend, Bitcoin lost roughly $1,000, falling from the $43,700 area to $41,980 on Saturday.
However, this decline in the BTC supply on crypto trading venues is likely to prevent any sell-offs, Santiment believes.
Santiment sees a bullish sign for Bitcoin
Earlier today, Santiment tweeted that over the weekend, despite the mild decline of the Bitcoin price, Saturday saw the highest number of active BTC addresses yet this year. The analytics team of the data vendor believes that this indicates an increase in utility; therefore, a possible price rise may follow it.
? #Bitcoin had a mild decline over the weekend, but Saturday was the highest amount of active addresses (1.08M) recorded in 2022. The uptick in participants transacting on the $BTC network is a nice sign of increased utility, a predecessor to price rises. https://t.co/37X2TtYk5S pic.twitter.com/ZP0vrgm5KB— Santiment (@santimentfeed) February 14, 2022