Bitcoin supply on exchanges plunge to a three-year low
According to data from Glassnode, the amount of Bitcoin on exchanges has dropped to its lowest in three years, suggesting that investors are actively accumulating the asset.
The on-chain data analytic platform revealed that the Bitcoin balance on exchanges as of late October 2021 was 2.46 million BTC, compared to over 2.47 million BTC from Q2 2021.
Judging by previous records, whenever Bitcoin has a good run, its balance on exchanges declines and tends to rise when investors load up their Bitcoin on exchanges, leading to an increased sell-off period.
The last time Bitcoin balances on exchanges were this low was in December 2018, after which the market stagnated in the months that followed. It eventually embarked on another massive Bull Run that took it to a new all-time high.
Similarly, the supply of Ethereum on exchanges is also at a two-year low of 14.4 million ETH.
BTC and ETH have risen sharply since the end of September 2021, climbing from approximately $42,000 and $2,900 to over $60,000 and $4,200, respectively.
The entire crypto market tends to rise in quick bursts. Although there is no way of being certain, general indicators like that of Bitcoin supply on exchanges give the impression that the market could be in a positive growth period.