Seasoned crypto expert Lark Davis records interesting metric amid ongoing bloodbath
The net number of Bitcoins (BTC) stored on the wallets of centralized cryptocurrency exchanges is one of the crucial on-chain metrics for the flagship cryptocurrency.
Bitcoin (BTC) reserves on stock exchanges target three-year lows
Lark Davis, evangelist and veteran cryptocurrency investor, shared charts that display the dynamics of Bitcoin’s (BTC) reserves from centralized exchanges correlating with its price.
As per this chart derived from the data of top-tier on-chain data vendor Glassnode, this crucial metric is in a downtrend since the third reduction of Bitcoin emissions in May 2020.
This process did not stop until the beginning of the third quarter of 2021, when a number of holders decided to cash in their rewards. However, the BTC balance on exchanges has been plummeting again since August 2020.
Right now, it’s significantly lower than at the start of 2019. For the first time in nearly 40 months, BTC balances on exchanges have fallen below 2.5 million Bitcoins.
Bitcoin (BTC) plunges to $53,500 as bloodbath intensifies
Mr. Davis interprets these dynamics as clear bullish sign. Typically, the reduction of BTC balances on CEXs is associated with the lack of interest in immediately selling coins.
As covered by U.Today previously, today Bitcoin (BTC) fell to its lowest level in eight weeks. Its price briefly hit an all-time high of $ 53,500 since Oct. 7.
More than $670 million in Bitcoin (BTC) shorts and longs have been liquidated in the last 24 hours. For many analysts, the current situation resembles the dramatic circumstances of March 2020.
