According to data from CryptoQuant, the number of Bitcoins held by centralized exchanges has dropped sharply, and has recently fallen to the lowest level in three years, indicating that investors' "coin hoarding" sentiment is high and their willingness to sell Bitcoins in the short term is greatly reduced.
On-chain data shows that in the past month, investors have withdrawn more than 51,000 Bitcoins from exchanges. Currently, major exchanges hold a total of approximately 2.61 million Bitcoins, with reserves as low as since October 2021. First sight.
Institutional “currency hoarding” reappears
Julio Moreno, director of research at CryptoQuant, said that this phenomenon is partly due to Mt. Gox issuing compensation to creditors. In addition, Coinbase’s Bitcoin reserves have also been significantly reduced, reducing the potential selling pressure in the market.
He further pointed out that Coinbase’s Bitcoins are mainly transferred to specific wallets for custody rather than parked in exchanges, which shows that demand from institutional investors is increasing, especially the buying power from enterprises and Bitcoin spot ETFs. .
However, Julio Moreno also emphasized that if the influence of Mt. Gox and Coinbase is excluded, the Bitcoin reserves of major exchanges this year are actually relatively stable, which also means that the main reason for the current decline in reserves is indeed concentrated in the above two sources. .
Since most investors believe in the principle of "Not your keys, not your coins" (Not your keys, not your coins), they usually transfer cryptocurrencies to cold wallets when their long-term belief is high. Store it properly for long-term holding.
The market generally believes that when investors move a large amount of Bitcoin from exchanges, it also means a large amount of supply is removed from the open market, resulting in tight supply and increasing buying pressure. Therefore, the phenomenon of large amounts of funds flowing out of exchanges is often regarded as a "bullish indicator."
"New Giant Whale" buying orders are strong, retail investors rush out
At the same time, data from CryptoQuant shows that new institutional wallets excluding miners and exchanges have significantly increased their holdings of Bitcoin in the past 30 days. CryptoQuant analyst J.A. Maartunn noted:
This new cumulative buying force is something we have never seen before, and the “new whale” is driving the price of Bitcoin higher and holds approximately 1.97 million Bitcoins. "
CryptoQuant’s analysis pointed out that this wave of accumulated buying can be clearly seen in exchange orders: Coinbase and Bitfinex have strong buying orders; while Binance and Bybit are mainly short-selling. This difference also reflects that "large investors are steadily accumulating Bitcoin" while "retail investors are reducing their positions."
CryptoQuant analysts said that this trend often causes the power of retail investors (sellers) to gradually dry up. After market sentiment improves, they may re-enter the market at price highs.
"The "tide of coin hoarding" by institutions has reappeared, and the "new whale" buying orders are strong! Foreshadowing "Bitcoin's new high"? "This article was first published on (Block Guest).
