#Bitcoin exchange reserves fall to record lows#
Hot Topic Overview
Overview
Bitcoin reserves on exchanges have fallen to their lowest level in nearly seven years, suggesting continued institutional buying of Bitcoin. According to CryptoQuant data, as of January 13, Bitcoin reserves on cryptocurrency exchanges dropped to 2.35 million BTC, the lowest level in nearly seven years since June 2018. While institutional buying is pushing Bitcoin prices higher, current trading volume is not sufficient to break the $100,000 resistance level. Analysts believe the decline in Bitcoin supply on exchanges could be due to continued discounted buying by institutional participants.
Ace Hot Topic Analysis
Analysis
Bitcoin exchange reserves have fallen to their lowest level in nearly seven years, suggesting that institutional investors are continuing to buy Bitcoin. According to CryptoQuant data, as of January 13, cryptocurrency exchange Bitcoin reserves fell to 2.35 million BTC, the lowest level in nearly seven years since June 2018. At that time, Bitcoin was trading slightly above $7,000. André Dragosch, director of research at Bitwise, said the decline in Bitcoin supply on exchanges could be due to continued discounted buying by institutional players. Despite this, analysts believe that while Bitcoin could be pushed higher by supply shocks, current trading volumes are not sufficient to reclaim the $100,000 resistance level. This means that while institutional investors' interest in Bitcoin continues to grow, overall market trading volume remains insufficient, which could limit further gains in Bitcoin prices.
Public Sentiment · Discussion Word Cloud
Public Sentiment
Discussion Word Cloud
Classic Views
Institutional investors continue to buy Bitcoin, driving exchange reserves to their lowest level in nearly seven years.
Bitcoin exchange reserves declines may be due to continued discounted buying by institutional investors.
While Bitcoin may be driven higher by a supply shock, current trading volume is not enough to reclaim the $100,000 resistance level.
Hedge funds buying Bitcoin at a discount could fuel price gains.