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Bitcoin exchanges return to historic lows

The amount of bitcoin on the balance sheets of major exchanges is depleting. This trend started after the halving in 2020 and appears to be intact to this day. At the time of writing, according to data from blockchain analytics firm CryptoQuant, there are only 2,308 million bitcoins left across 21 exchanges. You also have to keep in mind that not all of these bitcoins are available for sale. Many people keep their bitcoins on exchanges.

At the current rate of approximately €41,000 per bitcoin, all of these 2.308 million bitcoins could be raised for €94.6 billion. This sounds like a lot, but when you consider that there are more than 150 million people around the world who own bitcoin, it can dry up very quickly. Especially if you also include MicroStrategy, El Salvador, Tesla and other large entities that own bitcoin. The longer the price stays around that level, the more difficult it will be to explode to the top if there are no other sellers at these prices.

Bitcoin’s downtrend resumes on exchanges

At the end of December, the number of bitcoins among the major exchanges reached 2.303 million bitcoins. After that there was a brief recovery to 2.334 million bitcoins. In particular, Binance suddenly received a lot of bitcoins during this period. This may have been related to the Chinese subsidiary of Huobi which had to close its doors, forcing users of the exchange to look for a new home. For a portion of this group, that will become the Binance website.

It seems that the institutional parties are back from their vacation, as stocks on the stock exchanges are slowly starting to dry up again. Exactly as expected Some analysts who 2022 The Institutional Year has already been pre-named.

The only tricky part about measuring bitcoin balances on major exchanges is that it ultimately remains a guess. No one knows for sure which wallets belong to which platform and whether all wallets are covered. For example, CryptoQuant has a total of 21 exchanges, Glassnode monitors 18 exchanges and CoinMetrics only monitors 5. According to CryptoRank, the total is 1.3 million bitcoins. In short, it just depends on what you look at and what you consider important.

The big fish is running the show now

Institutional parties are buying right now, and that, combined with the fact that the real hype and madness in 2021 is gone, means we’re in a healthy market, according to David Boyle. Boyle is famous for multi urine indicator A well-known indicator by which to anticipate the long-term waves in the price of Bitcoin. It is used by many investors to determine the tops and bottoms of the market.

“The market is currently being controlled by institutional players, particularly when it comes to month-to-month price movements, with the retail audience shrinking in their role,” David Puell said in a discussion with CryptoQuant last week.

We have to see what 2022 brings us, of course. If we’ve learned one thing about the bitcoin market over the past few years, it’s that it’s incredibly unpredictable. In the short term, crazier things could happen, which means a big rally or a big bottom hit can never be ruled out. It is no coincidence that it is said that 1 year in the Bitcoin industry equals 5 years in the traditional financial world.