With the price of Bitcoin (BTC) plunging below $12,000, some investors are worried about a crypto market collapse like the one on March 11.
However, CryptoQuant data points to the opposite, as bitcoin stock market reserves have reached the lows of 2020. Cryptoquant CEO Ki-Young Ju notes that:
“People are concerned about such a sale in March, but there aren’t as many bitcoins on the exchanges as there was that day (waiting to be sold).”
The bitcoin stock market reserve indicator shows how much Bitcoin is held on the exchanges. When that measure falls, it suggests investors are transferring their savings from exchanges to a more secure and permanent method of storage.
Chain analysis data also show that the number of bitcoins held for 52 weeks is also on the rise.
As of the date of publication of the translation, 2.6 million Bitcoins are held on the exchanges. At the March sale, that figure was 2.9 million.
Miner’s are not selling
CryptoQuant data also shows that miners prefer to keep their bitcoin savings.
This suggests that miners expect the price to rise and is a good indicator of positive sentiment in the market, as miners account for a significant portion of bitcoin sales pressure…
As another good indicator, the Bitcoin hash rate is rising.
While the exchanges ‘ bitcoin reserves have seen their lowest levels this year, CryptoQuant data suggests this could change soon as bitcoin inflows into the exchanges increase.
Ki-Young Ju said the increase in the number of Bitcoin transferred to exchanges signaled an overall decline.
“The entry of Bitcoin into Spot exchanges is indicative of possible selling pressure.”
