Reserve

Bitcoin

<ul> 
 <li>The surge in BTC’s and USDT’s supply on exchanges presents contradicting trends</li> 
 <li style="font-weight: 400;">BTC miners have increasingly sold some of their holdings since 1 December</li> 
</ul> 
Following an extended period of rally, the general market is currently marked by volatility. Due to this, two contradicting trends in the activities associated with <a href="https://ambcrypto.com/search/BTC" target="_blank" rel="noopener" data-wpel-link="internal">Bitcoin [BTC]</a> and stablecoin <a href="https://ambcrypto.com/search/usdt" target="_blank" rel="noopener" data-wpel-link="internal">USDT</a>&nbsp;have emerged. 
<h3 id="b-what-are-these-trends-b">What are these trends?</h3> 
BTC’s key volatility markers have risen over the last few weeks, suggesting that the leading coin is prone to price swings. For example, its Average True Range has risen by 32% since 3 December. Likewise, within the same period, its Bollinger Bandwidth (BBW) has risen by over 250%.&nbsp; 
The values of these indicators suggest that BTC’s price has become more volatile since December began. Hence, the hike in the coin’s supply on exchanges. 
<div id="attachment_358436" style="width: 100%" class="wp-caption aligncenter">
 <a href="https://statics.ambcrypto.com/wp-content/uploads/2023/12/BTCUSD_2023-12-12_09-52-32.png" data-wpel-link="internal"><img aria-describedby="caption-attachment-358436" decoding="async" class="wp-image-358436 size-full" src="https://statics.ambcrypto.com/wp-content/uploads/2023/12/BTCUSD_2023-12-12_09-52-32.png" alt="" width="2368" height="1302" srcset="https://statics.ambcrypto.com/wp-content/uploads/2023/12/BTCUSD_2023-12-12_09-52-32.png 2368w, https://statics.ambcrypto.com/wp-content/uploads/2023/12/BTCUSD_2023-12-12_09-52-32-300x165.png 300w, https://statics.ambcrypto.com/wp-content/uploads/2023/12/BTCUSD_2023-12-12_09-52-32-1024x563.png 1024w, https://statics.ambcrypto.com/wp-content/uploads/2023/12/BTCUSD_2023-12-12_09-52-32-768x422.png 768w, https://statics.ambcrypto.com/wp-content/uploads/2023/12/BTCUSD_2023-12-12_09-52-32-1536x845.png 1536w, https://statics.ambcrypto.com/wp-content/uploads/2023/12/BTCUSD_2023-12-12_09-52-32-2048x1126.png 2048w" sizes="(max-width: 2368px) 100vw, 2368px"></a>
 Source: TradingView
</div> 
With the positive sentiment trailing BTC beginning to wane, the past few weeks have seen an uptick in the amount of BTCs sent to exchanges. Since 5 December, BTC’s exchange reserve has risen steadily. With a reading of 2.03 million BTC at press time, the amount of BTC held across exchanges has since grown by 5%. 
<div id="attachment_358434" style="width: 100%" class="wp-caption aligncenter">
 <a href="https://statics.ambcrypto.com/wp-content/uploads/2023/12/Bitcoin-Exchange-Reserve-All-Exchanges.png" data-wpel-link="internal"><img aria-describedby="caption-attachment-358434" decoding="async" class="wp-image-358434 size-full" src="https://statics.ambcrypto.com/wp-content/uploads/2023/12/Bitcoin-Exchange-Reserve-All-Exchanges.png" alt="" width="2560" height="1612" srcset="https://statics.ambcrypto.com/wp-content/uploads/2023/12/Bitcoin-Exchange-Reserve-All-Exchanges.png 2560w, https://statics.ambcrypto.com/wp-content/uploads/2023/12/Bitcoin-Exchange-Reserve-All-Exchanges-300x189.png 300w, https://statics.ambcrypto.com/wp-content/uploads/2023/12/Bitcoin-Exchange-Reserve-All-Exchanges-1024x645.png 1024w, https://statics.ambcrypto.com/wp-content/uploads/2023/12/Bitcoin-Exchange-Reserve-All-Exchanges-768x484.png 768w, https://statics.ambcrypto.com/wp-content/uploads/2023/12/Bitcoin-Exchange-Reserve-All-Exchanges-1536x967.png 1536w, https://statics.ambcrypto.com/wp-content/uploads/2023/12/Bitcoin-Exchange-Reserve-All-Exchanges-2048x1290.png 2048w" sizes="(max-width: 2560px) 100vw, 2560px"></a>
 Source: CryptoQuant
</div> 
A hike in BTC’s exchange reserve indicates a growing potential for sell pressure in the market. In a volatile market, it means that investors are cautiously moving their holdings back to exchanges, indicating a degree of uncertainty and potential for selling. 
Interestingly, as BTC’s supply on exchanges grows, there has been a steady increase in stablecoin USDT’s presence on exchanges as well. In fact, on-chain data provider <a href="https://twitter.com/santimentfeed/status/1734473475245687218" target="_blank" rel="noopener nofollow external noreferrer" data-wpel-link="external">Santiment</a> revealed that in the last six months, it has appreciated by 7%. According to the same, since 30 November, USDT’s supply on exchanges has climbed by 29%. 
<div id="attachment_358437" style="width: 100%" class="wp-caption aligncenter">
 <a href="https://statics.ambcrypto.com/wp-content/uploads/2023/12/Bitcoin-BTC-09.56.20-12-Dec-2023.png" data-wpel-link="internal"><img aria-describedby="caption-attachment-358437" decoding="async" class="wp-image-358437 size-full" src="https://statics.ambcrypto.com/wp-content/uploads/2023/12/Bitcoin-BTC-09.56.20-12-Dec-2023.png" alt="" width="2560" height="867" srcset="https://statics.ambcrypto.com/wp-content/uploads/2023/12/Bitcoin-BTC-09.56.20-12-Dec-2023.png 2560w, https://statics.ambcrypto.com/wp-content/uploads/2023/12/Bitcoin-BTC-09.56.20-12-Dec-2023-300x102.png 300w, https://statics.ambcrypto.com/wp-content/uploads/2023/12/Bitcoin-BTC-09.56.20-12-Dec-2023-1024x347.png 1024w, https://statics.ambcrypto.com/wp-content/uploads/2023/12/Bitcoin-BTC-09.56.20-12-Dec-2023-768x260.png 768w, https://statics.ambcrypto.com/wp-content/uploads/2023/12/Bitcoin-BTC-09.56.20-12-Dec-2023-1536x520.png 1536w, https://statics.ambcrypto.com/wp-content/uploads/2023/12/Bitcoin-BTC-09.56.20-12-Dec-2023-2048x693.png 2048w" sizes="(max-width: 2560px) 100vw, 2560px"></a>
 Source: Santiment
</div> 
Typically, this influx of USDT suggests that investors are accumulating and holding the stablecoin, potentially in anticipation of a bullish market upturn. However, the uptick in BTC’s exchange reserve points to uncertainty in the market as volatility spikes. 
<h3 id="b-are-miners-preparing-for-a-price-decline-as-well-b">Are miners preparing for a price decline as well?</h3> 
With Bitcoin trading at an 18-month high, miners have sent some of their BTC holdings to exchanges for onward sales. Since 1 December, BTC’s Miner Reserve has plummeted by 1% on the charts. 
This metric measures the amount of coins held in affiliated miners’ wallets. Its value&nbsp;indicates the reserves that miners are yet to sell. At press time, this figure stood at 1.83 million BTC. Since the start of the month, miners have sold 5288 BTC.&nbsp; 
<div id="attachment_358439" style="width: 100%" class="wp-caption aligncenter">
 <a href="https://statics.ambcrypto.com/wp-content/uploads/2023/12/Bitcoin-Miner-Reserve-All-Miners.png" data-wpel-link="internal"><img aria-describedby="caption-attachment-358439" decoding="async" class="wp-image-358439 size-full" src="https://statics.ambcrypto.com/wp-content/uploads/2023/12/Bitcoin-Miner-Reserve-All-Miners.png" alt="" width="2560" height="1612" srcset="https://statics.ambcrypto.com/wp-content/uploads/2023/12/Bitcoin-Miner-Reserve-All-Miners.png 2560w, https://statics.ambcrypto.com/wp-content/uploads/2023/12/Bitcoin-Miner-Reserve-All-Miners-300x189.png 300w, https://statics.ambcrypto.com/wp-content/uploads/2023/12/Bitcoin-Miner-Reserve-All-Miners-1024x645.png 1024w, https://statics.ambcrypto.com/wp-content/uploads/2023/12/Bitcoin-Miner-Reserve-All-Miners-768x484.png 768w, https://statics.ambcrypto.com/wp-content/uploads/2023/12/Bitcoin-Miner-Reserve-All-Miners-1536x967.png 1536w, https://statics.ambcrypto.com/wp-content/uploads/2023/12/Bitcoin-Miner-Reserve-All-Miners-2048x1290.png 2048w" sizes="(max-width: 2560px) 100vw, 2560px"></a>
 Source: CryptoQuant
</div>

Why surge in BTC and USDT’s flows to exchanges should concern you

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