The number of bitcoins held on exchanges did see a brief low during the market rout on March 12, otherwise known as ‘Black Thursday.’ News.Bitcoin.com’s collected data had shown in April that crypto exchanges saw bitcoin reserves drop by 70% since that day in mid-March.
In mid-May more than $220M in BTC was withdrawn from crypto trading platforms worldwide since the third halving.
“BTC deposits at major exchanges have dropped significantly since April and are currently at the low-levels of May 2019,” Arcane noted. “This suggests that more users prefer to store their BTC in private wallets, which may lead to a lower selling pressure in the upcoming months.”
However, other speculators think that the funds are funneling into alternative crypto assets rather than bitcoin (BTC). “Probably also reflective of the ability for people to buy alts directly from fiat, rather than first through BTC,” one individual replied to Arcane’s recent tweet.
For instance, market data shows that while BTC is up 19% during the last month, money flowing into ETH pushed the price up by over 40% in the last 30-days. XRP’s 30-day stats show gains over 38% and bitcoin cash (BCH) jumped 27% last month.
Today on July 30, the top five exchanges with the largest number of BTC reserves include Coinbase, Huobi, Binance, Bitfinex, and Okex.
Just recently, the San Francisco-based exchange Coinbase was responsible for 1 million BTC worth of reserves and today the trading platform only has 944,000 BTC according to the Bituniverse “Exchange Balance Rank” metric.
What do you think about the low number of bitcoins held collectively on global exchanges today? Let us know what you think about this subject in the comments below.
The post Bitcoin Exchange Reserves Drop to a 12-Month Low Fueling Bullish Optimism appeared first on Bitcoin News.
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