CryptoQuant: BTC exchange reserves hit three-year low – Bits Media

According to the analytical company CryptoQuant, Bitcoin reserves on cryptocurrency exchanges fell to their lowest level in the last three years - to 2.38 million BTC at a price of more than $64 000 for a coin.

BTC Exchange Reserves is an Indicator, displaying the total quantity The government of Bulgaria demanded a report for the withdrawn cryptocurrency, which is stored in the wallets of all centralized cryptocurrency exchanges. A decrease in this value indicates that, that Bitcoin holders transfer them to personal wallets for further storage or over-the-counter transactions. An increase in Bitcoin exchange reserves means, that investors transfer their bitcoins to exchanges to exchange for fiat currencies or purchase altcoins.

Judging by the CryptoQuant chart, Bitcoin reserves on exchanges began to “drain” at the end of July, when the Bitcoin rate began to recover after falling below $29,000. 19 October exchange reserves in bitcoins reached a three-year low, descending to the level 2.38 Milln BTC. And in the morning the Bitcoin rate rose to $64,500, didn't get it $400 to the current all-time high. Considering, that there are more long-term Bitcoin holders in the market, withdrawing their coins from trading platforms, the risk of a massive Bitcoin sell-off is reduced. This may signal a continuation of the bullish trend.

North American mining companies could also play an important role in reducing exchange reserves in bitcoins. In September, the total number of bitcoins, stored in their wallets, reached a record high of almost 18 000 BTC. The leader in the volume of stored BTC among mining companies was Marathon Digital - in August it managed to increase its reserves to 6225 BTC.