Bitcoin balances on the exchanges tend to slide to historic lows

Bitcoin reserves on the exchanges are back near record lows as 2022 sparks new demand from buyers.

Data from the on-chain analysis company CryptoQuant shows Reserves on 21 exchanges amounting to 2,308 million BTC (as of January 4th).

Total Bitcoin balance on the exchanges in a downward trend

According to CryptoQuant, the order books of the exchanges recorded a macro low of 2.303 million BTC at the end of December, but then rose quickly to 2,334 million.

Reserve card CLEARitcoin on the stock exchange | Source: CryptoQuant

However, when institutions return to the market after the holidays, the downward trend will be restored. This is in line with projections that bulk buyers will join in the first quarter of 2022.

Controversial stock market balance sheet data this week. Different statistical sources use different numbers of exchanges and wallets, which makes it difficult to compare data.

For example, CryptoQuant monitors 21 exchanges, while Glassnode monitors 18 exchanges and CoinMetrics monitors 5 exchanges.

Another resource is Cryptorank, which hit a balance of just 1.3 million BTC on Christmas Eve.

Depending on the platforms included, the trend may also vary as some exchanges have decreased their balances overall over the past month while others have increased.

As Bitcoin magazine As reported, this uneven rise and fall is due to the Huobi Global Exchange blocking Chinese users until the end of 2021 to ensure compliance.

Is there anything more important?

In a discussion with CryptoQuant last week, analyst David Puell, creator of the popular Puell multiple indicator, said Disclosure his thoughts on the behavior of emerging market participants.

The “relaxing” character of Bitcoin in 2021 compared to 2019 has kept private and “FOMO” investors away.

“I think that’s good for the situation in the long run. Institutional players will hold the majority of the market. Especially with the price movement from month to month, some early adopters take profits and the role of retail players is greatly reduced. “

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