Key Facts.

  • Since April 2021, more than 600,000 bitcoins have left exchanges.
  • Since September 2018, no minimum value of 2.37 million bitcoins has been reached.

Analyst firm CryptoQuant noted on its Twitter account on Monday, February 24, that bitcoin (BTC) reserves on exchanges reached at least 2.37 million, which is the lowest after 3.5 years of registration in September 2018. The maximum 2.6 million Bitcoins registered since late July 2021 started and has remained.

This downward trend in exchange BTC stocks continued throughout the second half of 2021, both during the bull market from July to November that led to the recent all-time highs, and in the subsequent correction.

The chart below shows the evolution of the exchange's BTC reserves from July 2018 to the present. After approaching 3 million BTC in October 2020, the reserves reached that value in April 2021. Then it starts to fall and there are some fluctuations, where the reserve decreases by more than 600,000 BTC to reach a value of 2.37 million, registered on February 25.

The removal of BTC from the exchange is seen as a bullish signal, as prices come under upward pressure as money flows into the holder-controlled portfolio and offers decrease.

1646080178_199_bitcoin-cotiza-40800-1024x455.jpg.webp As of noon on February 28, bitcoin was trading at over 40,800. Source: TradingView. Stablecoin has more buying power than bitcoin

The ratio of the value of BTC deposited on exchanges to the capitalization of stablecoin reserves continues to fall as BTC flows out of exchanges. In the chart below, CriptoQuant shows the evolution of the above quotient.

btc-stablecoin-ratio-1024x591.jpg.webp BTC market value relative to the value of stablecoins. Source: Cryptocurrency.

This indicator is inversely proportional to the BTC purchasing power of the stablecoin deposited on the exchange. The lower the ratio, the greater the ability to acquire BTC with stablecoins. From 11.3 on July 30, 2020, the ratio is currently 4.12, almost three times lower.

According to CriptoNoticias, on Monday 28 of this week, the price of bitcoin rebounded, temporarily exceeding $41,000, indicating that the growth in demand has been waning in recent days.