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Tuesday, May 24, 2022

Bitcoin Exchange Reserves Have Been Hitting Record Lows

The amount of Bitcoin that is available on different exchanges is all set to hit its lowest levels ever, according to data that highlights the fact. Ki-Young Ju, the CEO of CryptoQuant- an on-chain analytics platform, mentioned that the exchange reserves have gone down to all-time lows which were previously seen in early May. 

Time for another Bitcoin “sell-side liquidity crisis?”

Thursday brought forth reports that the latest date for these figures was widely available, which implies that there were around 2.399 million Bitcoin tokens available throughout cryptocurrency exchanges. The number in May was 2.390 million.

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The traders of this cryptocurrency have gone about and reversed a deposit trend that made sense during the price upheaval in the middle of May- something that clearly points to a return to an investment-focused mindset. Ki further added that he hoped that there was another sell-side liquidity crisis on this cryptocurrency. 

Such supply squeezes have been a common point of view in the last few weeks, which has been reinforced by a healthy structure of purchasing excess liquidity from the price dip on Tuesday. Interestingly, it isn’t just retail or derivatives platforms that have faced the brunt of Bitcoin withdrawal this week- for the overall supply of the cryptocurrency has become far less mobile.

According to data provided by Glassnode, an on-chain analytics firm, it has been confirmed that the section of the supply reached a three-year low on Friday. Those who had previously moved their BTC tokens between September 2019 and 2020 haven’t touched their holdings. 

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Bitcoin has decided to trade at a price below $46,000, following such problems throughout. In his previous update on YouTube, Michael van de Poppe, a contributor of Cointelegraph, denied any notion of the cryptocurrency entering a bearish market. 

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