As bidders seek liquidity from short-term sellers, Bitcoin (BTC), is being aggressively purchased at prices close to $30,000
CryptoQuant data shows that Bitcoin exchanges began to lose their BTC reserves as of December 31, 2018.
At current levels, BTC is a strikingly attractive investment
After a period in which traders sent BTC to exchanges to either sell or have to divert away from losses, exchanges now see larger overall outflows.
Between December 7 and December 28, 2021, the BTC reserves on 21 major platforms that CryptoQuant monitors increased from 2.396 to 2.428 millions BTC.
The longer-term downtrend recommenced and exchanges had a total of 2.366 Million Bitcoin as of Monday despite spot prices still at their six-month lows.
Bitcoin exchange reserves vs. BTC/USD chart. Source: CryptoQuant
CryptoQuant CEO Ki Young Ju believes that older whales are still capable of sparking price trend reversals despite their impatience in recent decades.
He said, “It appears they have been sold $BTC” in a series tweets on the topic. He noted that institutions have been the main buyers of Bitcoin since 2020.
Whales take (another!) dip
Although it is common knowledge, the trend in exchange balance coincides with tangible on-chain demand from large investors.
Related: Illiquid supply “going up relentlessly” — 5 things you should watch this week in Bitcoin
According to Twitter account CC15Capital, this week’s run to $33,000 was supported by multi-million dollar BTC buy-ins from a single wallet.
From a zero starting balance, the account has amassed more than $1 billion in BTC since August.
— CC15Capital (@Capital15C January 25, 2022
This phenomenon is further supported by a firm resolve of long-term holders to not sell. According to Cointelegraph, 60% of BTC supply is now held by coins that haven’t moved for a year or more.
Whale accumulation has also been evident elsewhere during the time following the fall from $69,000 highs.