Despite New ATH, Bitcoin Exchange Reserves Continue To Decline

Keshav Verma

1 year ago

3 mins read

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Despite the fact that Bitcoin has made a new ATH above $66,000, the exchange reserves have continued their trend of decline.

Bitcoin All Exchanges Reserve Continues To Go Down

As pointed out by a CryptoQuant post, the Bitcoin all exchanges reserve continues to show a downtrend despite the crypto making new all-time highs (ATHs).

The all exchanges reserve is a BTC indicator that tells us the total amount of coins deposited on centralized exchange wallets.

When the value of the metric shows an increase, it means investors are sending more of their Bitcoin to exchanges. This could imply that there is a selling pressure in the market as holders usually move their crypto to exchanges for withdrawing to fiat, or for purchasing altcoins with them.

Decreases in the indicator, on the other hand, suggest the supply for BTC is shortening as investors are taking their coins off exchanges. Such a trend could mean there is a buying pressure in the market and may prove to be bullish for the price.

Here is a chart that shows the trend in the Bitcoin all exchanges reserve indicator over the past couple of weeks:

Bitcoin reserves seem to be trending downward | Source: CryptoQuant

As you can see in the above graph, while the price of BTC has shot up recently as the crypto makes new ATHs, the indicator’s value has sharply fallen down.

What this implies is that many investors still haven’t tried to realize their profits. They have rather withdrawn their BTC and took it to personal wallets for hodling.

Below is another chart, this time for the Long-Term Holder SOPR indicator, which shows the degree of realized profits by investors who have owned their coins for more than 155 days.

BTC SOPR has been minimal recently | Source: CryptoQuant

As you would expect based on the reserves, the long-term holder SOPR has low values right now, showing that long-term investors still haven’t moved to realize their profits.

Even though BTC has already made new ATHs, it would seem holders are still expecting the price to appreciate further before they begin to harvest their gains.

BTC Price

At the time of writing, Bitcoin’s price floats around $65.7k, up 14% in the last seven days. Over the past month, the crypto has gained 51% in value.

Here is a chart showing the trend in the price of BTC over the last five days:

Bitcoin's price continues to make new ATHs as the price flies past the $65k mark | Source: BTCUSD on TradingView

Featured image from Unsplash.com, charts from TradingView.com, CryptoQuant.com

Keshav Verma

Keshav is currently a senior writer at NewsBTC and has been attached to the website since June 14, 2021.

Keshav has been writing for many years, first as a hobbyist and later as a freelancer. He has experience working in a variety of niches, even fiction at one point, but the cryptocurrency industry has been the longest he has been attached to.

In terms of official educational qualifications, Keshav holds a bachelor’s degree in Physics from one of the premier institutes of India, the University of Delhi (DU). He started the degree with an aim of eventually making a career in Physics, but the onset of COVID led to a shift in plans. The virus meant that the college classes had to be delivered in the online-mode and with it came free time for him to explore other passions.

Initially only seeking to make some beer money, Keshav unexpectedly landed clients offering real projects, after which there was no looking back. Writing was something he had always enjoyed and to be able to do it for a living was like a dream come true.

Keshav completed his Physics degree in 2022 and has been focusing on his writing career since, but that doesn’t mean his passion for Physics has ended. He eventually plans to re-enter university to obtain a masters degree in the same field, but perhaps only to satiate his own interest rather than for using it as a means to find employment..

Keshav has found blockchain and its concepts fascinating ever since he started going down the rabbit-hole back in 2020. On-chain analysis in particular has been something he likes to research more about, which is why his NewsBTC pieces tend to involve it in some form.

Being of the science background, Keshav likes if concepts are clear and consistent, so he generally explains the indicators he talks about in a bit of detail so that the readers can perhaps come out having understood and learnt something new.

As for hobbies, Keshav is super into football, anime, and videogames. He enjoys football not only as a watcher, but also as a player. For games, Keshav generally tends towards enjoying singleplayer adventures, with EA FC (formerly FIFA) being the only online game he is active in. Though, perhaps due to being ultra-focused on the game, he is today a semi-pro on the EA FC scene, regularly participating in tournaments and sometimes even taking back prize money.

Because of his enthusiasm for anime and games, he also self-learned Japanese along the way to consume some of the untranslated gems out there. The skill didn’t merely remain as just a hobby, either, as he put it to productive use during his exploration for small-time gigs at the start of COVID, fulfilling a couple of Japanese-to-English translation jobs.

Keshav is also big into fitness, with agility and acceleration-related workouts making a big part of his program due to the relevance they have in football. On top of that, he also has a more traditional strength based program for the gym, which he does to maintain an overall fitness level of his body.

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