The Bitcoin reserves of exchanges are continuing to drop, which suggests retail investors and whales might be accumulating.
According to data from CryptoQuant, all exchanges' reserves dropped to 2.4 million BTC, which is equivalent to $25 billion.
Bitcoin reserves on all exchanges throughout the past year.
The reserves of exchanges increase when investors deposit Bitcoin.
When exchange inflows decline, it often signifies that the appetite to sell BTC by investors is declining.
Another chart from CryptoQuant depicts the trend of net inflows of Bitcoin into exchanges in the same timeframe.
Whale clusters form when whales accumulate new BTC and do not touch the new holdings.
Considering the accumulation trend and the resilience of BTC above $10,000, investors likely have little appetite to sell.
Due to the confluence of the lacking willingness to sell BTC at current prices and consistent accumulation, BTC is on track for a strong quarterly close.
According to Skew, Bitcoin is en route to see its second-best quarterly close.
Bitcoin exchange reserves down $5B in 2020 hints at whale accumulation
Published on Sep 30, 2020
by Cointele | Published on Coinage
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