Tuesday, January 18

Bitcoin inventories on exchanges fall to 2018 levels

Inventories of bitcoin (BTC) on exchanges continue to decline and reached 13.2% of supply this Thursday, which is equivalent to 2.49 million BTC, according to data from Glassnode. BTC inventories had reached this value in February 2018.

While the price of bitcoin (BTC) followed a declining trend, inventories grew to their all-time high of 17.02%, recorded on March 20, 2020. This high occurred a week after the widespread decline in markets, including the of cryptocurrencies, when the WHO made the declaration of the Covid 19 pandemic.

As seen in the graphic Next, inventories returned to 13.2% in just over three years and ten months. The big difference between the two dates is in the market capitalization of bitcoin. On February 4, 2020, bitcoin was trading at $ 6,891, while BTC’s currency was at that time 16.84 million BTC. This means that the market capitalization on that date was USD 116,028 million.

The historical maximum of BTC presence on exchanges, 17.02%, was achieved in March 2020. Source: Glassnode.

At the time of writing this note, market capitalization is USD 872,770 million, since the price of BTC is USD 46,171, while the current is 18,903 million BTC. The percentage of BTC in the exchanges returns to the value it had three years and 10 months ago, but its capitalization has increased 652% in that period.

The continued departure of BTC from exchanges is largely due to accumulation on the part of long-term holders, which, although it has not continued with an upward trend, remains at high levels, according to an analysis by Willy Woo, commented on by CriptoNoticias.

Woo also highlights that, despite the price correction that started after the all-time high on November 10, there have also been intensive purchases by small holders, with less than 1 BTC.