Bitcoin reserves on exchanges collapsed to the level of 2018

CONTENT

  • More and more bitcoin owners prefer to keep an asset on hardware wallets

  • Bakkt Bitcoin Futures Trading Volumes Set New Records

  • The persistence of bitcoin trading volume despite the fall in price does not bode well

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The reserves of the first digital currency on the leading cryptocurrency exchanges fell to the low of November 2018 due to the inability of the cryptocurrency to gain a foothold above $ 12,000

Starting in March 2020, the number of Bitcoin deposits on major cryptocurrency exchanges has been steadily decreasing, approaching the November 2018 lows. This is the conclusion reached by the experts of the analytical resource Arcane Research.

Source: research.arcane.no

As of September 21, 2020, the amount of bitcoin cryptocurrency on major exchanges is 2.5 million BTC (~ $ 26.8 billion at the rate at the time of writing). This is 374.7 thousand BTC less than in a record March 2020.

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Analysts claim that over 100 thousand bitcoins have been withdrawn from cryptocurrency exchanges for further use in Ethereum protocols in the decentralized finance (DeFi) segment. Experts also believe that the outflow may indicate the desire of many holders of the bitcoin cryptocurrency to store assets in more reliable places, such as hardware wallets..

Dawn of Bitcoin Futures

Such a significant outflow of bitcoins in the long term may lead to a decrease in pressure on the price from sellers. The cheaper asset may be explained by the fact that there will be fewer and fewer people on the market who want to sell their cryptocurrency savings, Arcane Research believes..

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However, the decrease in bitcoin reserves on exchanges did not significantly affect the supply of bitcoin futures to Bakkt. Held-to-maturity futures volumes increased 164% to 356 BTC in September, breaking the March 2019 record.

Source: research.arcane.no

More and more investors are starting to use Bitcoin on Bakkt, judging by the average daily volume, which is up $ 63 million over the summer months of 2020. At the same time, in the period from September 14 to 20, the trading volumes on Bakkt set a new record at all, exceeding $ 170 million.

Bitcoin reserves on exchanges collapsed to the level of 2018

The worst is yet to come

Nonetheless, Arcane Reseach analysts expect the market to deteriorate as the recent Bitcoin price crash did not affect trading volumes..

Source: research.arcane.no

“Strong volume support during the Bitcoin sell-off has always been a bad sign … for the market to return to a bullish trend again, similar volume support should be observed during price reversals,” analysts said..

A potential negative scenario was previously reported by the editorial staff of BeInCrypto. Gold and silver continue to fall around the escalation of the conflict between the US and China, the election hype in America, and a possible second wave of coronavirus. Bitcoin is likely to react to this situation as well.

The price of bitcoin BTC / USDT at the time of writing is $ 10.495 (-1.94%).

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Bitcoin reserves on exchanges collapsed to the level of 2018
Bitcoin reserves on exchanges collapsed to the level of 2018
Bitcoin reserves on exchanges collapsed to the level of 2018
Bitcoin reserves on exchanges collapsed to the level of 2018

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