Bitcoin continues to hover around the $21,000 mark and is struggling with bearish investor sentiment. The flagship cryptocurrency can’t seem to keep its head above water as massive investor selling is preventing the price from bouncing back. Bitcoin even dropped to an 18-month low, falling below $18,000 earlier this month.
However, one sign that could be reassuring is the amount of Bitcoin held on exchanges. According to data from Glassnode, Bitcoin balances held by exchanges fell to a 3-year low of 2,384,477 BTC yesterday.
The amount of Bitcoin held on the exchange is an indicator of general market sentiment. Typically, the supply of bitcoin on exchanges increases when BTC is transferred to exchanges for sale. Recent figures confirm this notion, with the biggest inflow of Bitcoin since 2018 occurring on June 14, 2022. Five days later, BTC hit a low of $17,744.
On the other hand, the last time bitcoin exchange reserves hit an all-time high (3 years ago), bitcoin price took off. It was a similar story in September 2021: bitcoins held on exchanges started to fall and prices started to recover, which eventually led to an all-time high for the legacy coin. This inverse relationship between Bitcoin held on an exchange and prices can be seen in the chart below:
The Glassnode post also reveals that the previous 3-year low of 2,384,519 BTC was seen just two days ago. This shows that the bitcoin held on the exchange is gradually declining.
In the midst of these difficult times, another interesting and encouraging measure has emerged. Investors are looking to buy the dip and add to their BTC stock while prices are low. Glassnode reported that the number of “non-zero wallets” hit an all-time high (ATH) of 42 million. Additionally, the number of Bitcoin wallets holding one or more BTC also hit an ATH of 870,762.
However, it is not all good news. According to data from Coinshares, Bitcoin-specific funds saw an outflow of $453 million last week. An exit occurs when investors sell their crypto-based funds and it is often a bearish sign.
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This latest outing more than neutralized any inflow over the previous six months. And according to the report, crypto products from Toronto-based Purpose Investments contributed the lion’s share of the losses, suffering a whopping $490.7 million outflow last week. This could be due to the recent 0.50% rate hike by the Bank of Canada.
In total, Bitcoin’s total assets under management (AuM) currently stand at $24.5 billion, the lowest in 18 months. Bitcoin is currently trading at $20,968, losing 2.4% in the past 24 hours and 70% since November 2021’s ATH of $69,000. Bitcoin’s market capitalization is $396.65 billion at the time. of the editorial staff.