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The price of bitcoin has already risen 10% in the last seven days, surpassing the $67,000 mark again in the last few hours. The Coinmarketcap Fear and Greed Index has now changed to greed in light of the recent buying momentum and shows no signs of slowing down.
He buying pressure on bitcoin has been so good in recent days, which has caused a huge decrease in the amount of btc available on crypto exchanges. According to on-chain data, this has caused the bitcoin exchange reserve to fall to its lowest point in five years.
btc exchange reserve drops to 5-year low
In recent days, demand for bitcoin has exceeded its supply, causing a sharp drop in currency reserves. According to CryptoQuant data republished on social media platform
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martinez x.com/ali_charts/status/1846691592993734815″ rel=”nofollow”>the graph reveals an intriguing trend in bitcoin currency reserves that has developed throughout the year. At the beginning of 2024, reserves amounted to approximately 3.05 million btc. However, this number has greatly decreased since then.
The decreasing supply of bitcoin on exchanges may be bitcoin-apparent-demand-has-turned-green-again/” rel=”nofollow”>attributed to several key factors. Firstly, there is the growing interest from institutional players, especially following the approval and growing momentum of bitcoin Spot ETFs. These ETFs havebitcoin-etfs-attract-555-million-in-fresh-inflows/” rel=”nofollow”> triggered significant purchasing activityand US-based Spot bitcoin ETFs will eventually become the second-largest holders of btc behind Satoshi Nakamoto.
Many long-term holders also contributed to the buying pressure, as many continued to buy en masse. Even periods of price corrections and sell-offs by short-term holders were highlighted by the movement of more btc. in stable long-term hands those who are least likely to sell.
As a result, the total amount of bitcoin held on crypto exchanges has dropped by approximately 450,000 btc since January, bringing the current reserve to just 2.6 million btc. This is the lowest level seen since January 2019, and such a steep drop usually indicates a bullish outlook for bitcoin. “We all know what this means,” Martínez x.com/ali_charts/status/1846691592993734815″ rel=”nofollow”>saying.
What does this mean for the price of bitcoin?
The current state of bitcoin currency reserves suggests that market participants are increasingly holding on to their btc in anticipation of future gains, as many people continue to speculate on where the price of bitcoin could be headed in the coming months.
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When fewer coins are available on exchanges, it often indicates a reduction in selling pressure, causing the price to rise as demand continues to increase.
Uptober is now fully up for grabsand bitcoin is already up 6.3% for the month. At the time of writing, bitcoin is trading at $67,200. This notable price puts bitcoin on track to surpass its all-time high of $73,737 before the end of October.
Featured image created with Dall.E, chart from Tradingview.com
