The Bitcoin exchange reserve recorded its lowest value on record, which should represent a bullish development. However, recent activity in stablecoin reserves highlights a point of concern.
Exchanges Now Hold Only 13% of BTC Supply – Details
In a QuickTake article on CryptoQuant, APTRekt reports that only 2.72 million BTC is now available on crypto exchanges. This recorded figure represents 13.60% of the circulating BTC supply and is the lowest value ever recorded for Bitcoin exchange reserves. APTRekt states that Bitcoin reached this new all-time low in exchange reserves despite a dominant selling pressure between Wednesday and Thursday, triggered by the failure of a price breakout in the $75,000 region.
In general, an increase in foreign exchange deposits indicates that investors are more willing to sell their assets in the market. Conversely, a decline in foreign exchange reserves is considered a positive development, indicating that investors are choosing to move their holdings into private wallets, demonstrating their long-term confidence and anticipation of price appreciation.
Therefore, the new low of the Bitcoin exchange reserve should be considered a bullish event. However, concomitant developments in the stablecoin market paint a negative alternative scenario. Notably, Stablecoin’s foreign exchange reserves were valued at $68.8 billion on March 18. However, the current figures are said to be around $68.2 billion, highlighting a withdrawal of around $600 million in 48 hours.
A similar flash transaction last occurred between January 18 and 21, preceding a massive withdrawal of liquidity from the cryptocurrency market. According to APTRekt, Bitcoin typically suffers a massive slowdown during such withdrawals, putting the leading cryptocurrency at risk of further price declines if the historical pattern holds true.
Bitcoin Whale Wallets Rise by 753 Despite Price Struggles
Separately, Santiment data reveals that market whales, i.e. wallets containing 100 BTC or more, have increased by more than 753 in the last three months. Notably, this bullish development comes amid a prolonged corrective phase in which the flagship cryptocurrency has traded as high as $60,000 with a net market loss of 20.2%.
Santiment explains that this accumulation trend is one of several bullish divergences amid the current short-term price volatility, which also reflects sustained confidence among major Bitcoin investors. At press time, Bitcoin is valued at $70,600 after losses of 0.05% and 0.5% on the daily and weekly charts, respectively. At the same time, the digital asset saw a net gain of 5.95% over the past 30 days, suggesting that market action has been largely positive in recent weeks.
Featured image from iStock, chart from Tradingview
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