Bitcoin holdings on centralized exchanges have significantly decreased, reaching a six-year low even as the asset hits a new all-time high.
On Sunday morning, Bitcoin achieved a new peak price of just over $125,700 on Coinbase, according to Tradingview.
Previously, on August 14, Bitcoin peaked at $124,500 on Coinbase. After a 13.5% drop by September 1, Bitcoin has seen a strong rebound as ‘Uptober’ has commenced.
“Bitcoin reaches a new all-time high … Yet many people are still unaware of what Bitcoin truly is,” stated Nate Geraci, President of Nova Dius.
“If Bitcoin can convincingly surpass $126,500, it is likely that the price will surge higher and rapidly,” mentioned analyst Rekt Capital on Saturday, just before the latest price peak.
Exchange balances hit six-year low
The Bitcoin balance on centralized exchanges fell to a six-year low of 2.83 million BTC as of Saturday, according to Glassnode.
The last instance of fewer coins on exchanges occurred in early June 2019, when Bitcoin traded around $8,000 during a bear market.
Blockchain analytics platform CryptoQuant reported a slightly lower total exchange reserve figure of 2.45 million BTC, marking a seven-year low.
Both platforms indicate a significant drop in BTC exchange balances over the last couple of weeks. Over the past two weeks, more than 114,000 BTC, valued at over $14 billion, has exited exchanges, according to Glassnode.
The transfer of Bitcoin from centralized exchanges to self-custody, institutional funds, or digital asset treasuries suggests that holders are opting to keep their coins long-term instead of selling. Bitcoin held on exchanges is regarded as “available supply” that could potentially flood the market at any moment.
Exchanges running low
“There are reports of exchanges running out of Bitcoin,” remarked Matthew Sigel, head of digital assets research at VanEck, on Saturday.
“Monday at 9:30 AM might mark the first official shortage,” he stated, further adding, “Not financial advice… just: it might be wise to acquire some.”
Investor and trader Mike Alfred noted on Sunday morning that “I just finished a 20-minute call with THE individual running the most critical OTC desk.”
“He claims that at the current rate, they will run out of Bitcoin to sell within two hours after futures open tomorrow, unless the price hits $126,000 to $129,000. Things are getting intense.”
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