Bitcoin exchange reserves have hit an all-time low, which may indicate modest progress. However, recent stablecoin holding activity highlights concerns.
Exchanges Now Hold Only 13% of BTC Supply – Details
In a post on CryptoQuant’s QuickTake, APTRekt reported that there are currently only 2.72 million BTC available on cryptocurrency exchanges. This recorded figure represents 13.60% of the circulating BTC supply and is the lowest ever value for Bitcoin exchange reserves. APTRekt said Bitcoin reached an all-time low in foreign exchange reserves despite prevailing selling pressure triggered by the price’s failure to break through the $75,000 region between Wednesday and Thursday.
An increase in foreign exchange deposits generally indicates that investors are ready to offload their assets in the market. Conversely, a decrease in foreign exchange reserves is considered a positive development. This indicates that investors are choosing to move their holdings to their personal wallets, demonstrating long-term confidence and expectations of rising prices.
Therefore, a new low in Bitcoin exchange reserves is considered a bullish event. However, the simultaneous development of the stablecoin market presents a negative alternative scenario. In particular, as of March 18, stablecoin exchange holdings were valued at $68.8 billion. However, the current figure is reported to be around $68.2 billion, with about $600 million being withdrawn within 48 hours.
Similar flash trades last occurred between January 18 and January 21, before massive liquidity withdrawals occurred in the cryptocurrency market. According to APTRekt, Bitcoin typically experiences massive declines during these pullbacks, and if the historical pattern continues, the top cryptocurrency is at risk of experiencing another price downturn.
Bitcoin Whale Wallets Increase by 753 Despite Price Struggle
In other news, data from Santiment shows that market whales, or wallets holding more than 100 BTC, have increased by more than 753 over the past three months. Notably, these optimistic developments stemmed from a prolonged correction phase in which the flagship cryptocurrency traded as low as $60,000 with a net market loss of 20.2%.
Santiment explains that this accumulation trend is one of many bullish differences emerging amid the current near-term price volatility, and that it reflects continued confidence among mainstream Bitcoin investors. At press time, Bitcoin was valued at $70,600 after losing 0.05% and 0.5% on the daily and weekly charts, respectively. Meanwhile, the digital asset has recorded a net gain of 5.95% over the past 30 days, suggesting that market activity has been broadly positive in recent weeks.
Featured image from iStock, chart from Tradingview
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