Bitcoin exchange balances are at a three-year low, indicating optimistic feelings for BTC
While the market capitalization of cryptocurrencies remains below $1 trillion and most of its assets struggle to recover to their former glory, there may be a glimmer of light for Bitcoin, the flagship digital asset (BTC).
Specifically, charts reveal that the Bitcoin balance on crypto exchanges is at its lowest level in years, showing that more individuals are ‘holding’ the currency and hinting that preparations are underway for a future bullish run.
According to the data from the on-chain and financial metrics monitoring platform Glassnode, posted through its alerts account glass node alerts, this sum has hit its lowest level since 2018 and stood at 2,384,477.040 BTC as of June 26.
Historically, the fluctuation in the quantity of Bitcoin held on exchanges has mirrored market sentiment. In reality, Bitcoin’s price fluctuations have traditionally been inversely proportional to the quantity kept in wallets on established exchanges.
This is due to the fact that assets on exchanges tend to decline if there is a greater purchasing demand – that is, if more players choose to purchase than sell. It also implies that the holding mode is active and that preparations may be ongoing for a future bullish run. In accordance with this reasoning, a price rise might be anticipated if the pattern of decreasing Bitcoin balances on exchanges persists.
Notably, Finbold reported a significant $2 billion outflow of Bitcoin from exchanges in a single week some days before, indicating that the trend was beginning to take root.
Nonetheless, Katie Stockton, creator of Fairlead Strategies, anticipates a relief rally in the near future, although a subdued one owing to the market’s observed downward trend.
At the time of publication, Bitcoin was trading at $21,436, representing a loss of 0.05 percent on the day but a gain of 4.61 percent over the preceding seven days.