The post Bitcoin exchange reserves drop below 2.6 million BTC in a volatile market appeared on BitcoinEthereumNews.com.

BTC LTHs are torn between selling and holding amidst price volatility. Bitcoin remained below $60,000 at press time. The recent increase in Bitcoin’s [BTC] volatility is evident, as its price struggles to maintain the crucial $60,000 range. Despite these price fluctuations, a notable trend has emerged: Bitcoin exchange reserves have declined. This decrease in exchange reserves indicates that major holders, often called “whales,” are increasingly unwilling to sell their Bitcoin. Bitcoin exchange reserves hit another low AMBCrypto’s analysis of Bitcoin’s exchange reserves revealed that they have hit another low, continuing a significant downward trend that began at the start of the year. According to the chart on CryptoQuant, the reserves have fallen to approximately 2.6 million BTC. This was down from over 3 million BTC reserves recorded in January. Also, this decline in exchange reserves suggests a reduction in the liquidity available on exchanges. This reduction in liquidity can be a positive sign for Bitcoin’s price, as it indicates that fewer holders are looking to sell their BTC. The move reduces the selling pressure on the market.  Source: CryptoQuant Furthermore, the ongoing decline in exchange reserves is likely driven by long-term holders (HODLers). This behavior reflects a strong belief in Bitcoin’s future value and a reluctance to engage in short-term trading. As long-term holders’ dominance increases, the market could become more stable and less susceptible to large panic sales.  Comparing CDD with Bitcoin exchange reserves The recent analysis of Bitcoin’s Coin Day Destroyed (CDD) metric alongside Bitcoin exchange reserves suggests an interesting divergence. The CDD metric has experienced a slight spike recently. This contrasted with the previously stable trend that indicated long-term holders (LTHs) were not actively spending their coins.  The CDD metric tracks the movement of older Bitcoins that have accumulated “coin days” while remaining unspent. Each Bitcoin earns…

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Filed under: News - @ August 30, 2024 10:11 pm