Bitcoin: Hidden Trends in the Crypto Market

Data from CryptoQuant shows that bitcoin reserves on centralized exchanges have fallen to levels not seen in many years. In October 2021, reserves stood at 3.2 million BTC, and today they have decreased to approximately 2.6 million BTC. This decline indicates a reduction in the liquid supply of the first and most well-known cryptocurrency.

Why are investors choosing non-custodial storage?

The trend of decreasing reserves on exchanges suggests that many market participants prefer non-custodial solutions for storing their assets. This means they are focused on long-term investments rather than speculation. More and more crypto investors are moving their funds to their own wallets, significantly reducing the amount of bitcoin available on exchanges.

Whale accumulation: new players in the market

Interestingly, amid the decline in reserves on exchanges, there is an increase in accumulation among so-called "new whales" – large investors who are neither miners nor exchange owners. These players are starting to actively buy BTC, and significant buying pressure is observed on major platforms like Coinbase and Bitfinex.

According to analysts, over 51,000 BTC have been withdrawn from large trading platforms in the past month. Whales that have not held coins for more than 155 days are also continuing to accumulate assets, which could lead to new market trends.

According to CryptoQuant experts, the current situation could lead to small investors beginning to deplete their resources. When market sentiment turns positive, they may have to buy bitcoins at significantly higher prices. This could create additional pressure on the price of the first cryptocurrency and increase its volatility.