Bitcoin

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<ul>
 <li>A 10-year historical trend for Bitcoin (BTC) exchange reserves has shifted. Over the last three years, investors have shown a tendency to withdraw more Bitcoin from crypto exchanges.</li>
 <li>As of the time of writing, there are approximately 2.04 million BTC in exchange reserves. This figure still represents more than 10% of Bitcoin’s current circulating supply.</li>
 <li>Interestingly, the lower the amount of Bitcoin held in exchange reserves, the lower the demand needed to trigger a bull market, as it was two years ago.</li>
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<p><strong>Bitcoin’s central exchange reserves have been decreasing for 3 years: What does the decline in this metric mean? Historical comparison!</strong></p>
<h2 id="strong-bitcoin-exchange-reserves-keep-decreasing-strong"><strong>Bitcoin Exchange Reserves Keep Decreasing</strong></h2>
<p><img loading="lazy" decoding="async" class="alignnone size-full wp-image-126554" src="https://i0.wp.com/en.coinotag.com/wp-content/uploads/2023/09/Bitcoin-BTC-55.webp?resize=696%2C392&amp;quality=70&amp;ssl=1" alt="bitcoin-btc" width="696" height="392" srcset="https://i0.wp.com/en.coinotag.com/wp-content/uploads/2023/09/Bitcoin-BTC-55.webp?w=1920&amp;quality=70&amp;ssl=1 1920w, https://i0.wp.com/en.coinotag.com/wp-content/uploads/2023/09/Bitcoin-BTC-55.webp?resize=300%2C169&amp;quality=70&amp;ssl=1 300w, https://i0.wp.com/en.coinotag.com/wp-content/uploads/2023/09/Bitcoin-BTC-55.webp?resize=1024%2C576&amp;quality=70&amp;ssl=1 1024w, https://i0.wp.com/en.coinotag.com/wp-content/uploads/2023/09/Bitcoin-BTC-55.webp?resize=768%2C432&amp;quality=70&amp;ssl=1 768w, https://i0.wp.com/en.coinotag.com/wp-content/uploads/2023/09/Bitcoin-BTC-55.webp?resize=1536%2C864&amp;quality=70&amp;ssl=1 1536w, https://i0.wp.com/en.coinotag.com/wp-content/uploads/2023/09/Bitcoin-BTC-55.webp?resize=150%2C84&amp;quality=70&amp;ssl=1 150w, https://i0.wp.com/en.coinotag.com/wp-content/uploads/2023/09/Bitcoin-BTC-55.webp?resize=696%2C392&amp;quality=70&amp;ssl=1 696w, https://i0.wp.com/en.coinotag.com/wp-content/uploads/2023/09/Bitcoin-BTC-55.webp?resize=1068%2C601&amp;quality=70&amp;ssl=1 1068w, https://i0.wp.com/en.coinotag.com/wp-content/uploads/2023/09/Bitcoin-BTC-55.webp?w=1392&amp;quality=70&amp;ssl=1 1392w" sizes="(max-width: 696px) 100vw, 696px" data-recalc-dims="1"></p>
<p>A 10-year historical trend has changed for Bitcoin (BTC) exchange reserves. Over the last three years, investors have shown a tendency to withdraw more Bitcoin from crypto exchanges. Understanding that BTC deposited to an exchange can become selling pressure at any moment is important. This speculative supply poses a near-term selling threat that can neutralize future speculative demand, negatively affecting Bitcoin’s price movement.</p>
<p>Moreover, depositing funds into an exchange is often interpreted as an intention to sell. On the other hand, withdrawing funds to a personal storage Bitcoin wallet indicates the opposite intention: the intention to “HODL.”</p>
<p>Significantly, from 2013 to 2020, Bitcoin exchange reserves consistently increased, with investors and miners depositing their BTC increasingly on exchanges for trading or selling.</p>
<p>As of the time of writing, there are approximately 2.04 million BTC (73.3 billion dollars) in exchange reserves. This figure still represents more than 10% of Bitcoin’s current circulating supply, which is a heavily weighted speculative supply. However, this also means that Bitcoin exchange reserves have decreased by about 32% from the peaks of around 3 million BTC held by exchanges in 2020.</p>
<h2 id="strong-despite-high-supply-btc-reached-a-record-in-2021-strong"><strong>Despite high supply, BTC reached a record in 2021</strong></h2>
<p>Despite historically having one of the highest speculative supply amounts, BTC managed to reach an all-time high price in 2021 due to significantly higher speculative demand for the leading cryptocurrency.</p>
<p>Interestingly, the lower the amount of Bitcoin held in exchange reserves, the lower the demand needed to trigger a bull market, similar to two years ago. Additionally, this also signifies reduced risk exposure for storage disasters, like those seen in 2022, for platforms such as FTX.</p>
<p>The post <a rel="noopener noreferrer nofollow" href="https://en.coinotag.com/bitcoin-reserves-on-exchanges-have-been-decreasing-for-the-last-3-years-why-is-this-metric-important/">Bitcoin Reserves on Exchanges Have Been Decreasing for the Last 3 Years: Why Is This Metric Important?</a> appeared first on <a rel="noopener noreferrer nofollow" href="https://en.coinotag.com">COINOTAG NEWS</a>.</p>
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Bitcoin Reserves on Exchanges Have Been Decreasing for the Last 3 Years: Why Is This Metric Important?

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