The amount of Bitcoin deposited on exchanges is at a six-month low.
Bitcoin data on exchanges
That’s revealed by the special chart from cryptoquant.com, which indicates that this amount has dropped below 2.4 million in the last few days.
This level turns out to be slightly lower than the one touched in mid-April 2021, shortly after the all-time high price was reached at $64,000.
That’s by far the lowest level since CryptoQuant started collecting this data in February three years ago.
However, if we take their counter value in dollars instead of considering the total number of BTC present on the exchange’s wallets, then the current one is not a record. However, it remains the lowest level in the last months.
Currently, the 2.363 million BTC held on exchange wallets have a total value of about $100 billion, which is only 12% of its entire market capitalization.
Compared to July 2021, Bitcoins held on exchanges have shrunk by almost 9%.
In August, perhaps also due to the low level of BTC present on the exchanges, the price began to rise again, after the sharp drop that began after mid-May. It is not excluded that a somewhat similar dynamic could be triggered now as well.
The price of Bitcoin
Meanwhile, the mining hashrate is at an all-time high, with miners not selling all the BTC they manage to mine on the market.
The situation is such that, should there be a significant increase in demand, this may also significantly drive up the price of Bitcoin, which is now reported to still be 36% below its all-time high of early November 2021.
It should not be forgotten that on January 24, it hit a low at $33,500, which is more than 50% lower than the high. Since then, the rise has already been significant, although still not enough even to approach the November highs.
In this period, however, several factors are weakening a bit all financial markets, including the cryptocurrency one, and a rise of 30% in three weeks in such conditions makes us assume that the price of Bitcoin at this time, in reality, is not suffering at all.