Percentage of the Bitcoin supply on exchanges has dipped further down to 12% recently, as the supply shock continues to deepen.
Just 12% Of Bitcoin Supply Is Now Held By Exchanges
As pointed out by an analyst in a CryptoQuant post, the percentage of BTC supply stored on exchanges has now dropped down to just 12%.
The all exchanges reserve is an on-chain indictor that measures the total amount of Bitcoin currently held by wallets of all exchanges.
The “percentage of BTC supply on exchanges” is a metric that tells us the ratio between the exchange reserve and the total supply of the crypto.
When the value of this indicator moves up, it means exchange wallets are receiving a net amount of coins. As investors usually send their coins to exchanges for selling purposes, this supply is often referred to as the sell supply of the market. Therefore, an uptrend in it can be bearish for the price of the crypto.
On the other hand, when the metric’s value moves down, it means holders are withdrawing their Bitcoin from exchanges. Prolonged such trend can imply there is accumulation going on in the market, and the available supply is shrinking. Hence, downwards movement of the indicator can be bullish for BTC.
Related Reading | Bitcoin Miners Show Strong Accumulation As Their Inventories Spike Up
Now, here is a chart that shows the trend in the value of this metric over the past few years:
Looks like the supply on exchanges has been heading down since a while now | Source: CryptoQuant
As you can see in the above graph, the percentage of the Bitcoin supply on exchanges has…