Are Bitcoin and Ethereum Exchange Reserves Really Running Out?

The amount of bitcoin and ethereum held on crypto exchanges has fallen to an all-time low. This decline in the exchange reserves of the two largest digital assets could indicate positive market conditions. However, there is also a downside that new investors in particular should take into account.

Exchange reserves drop dramatically

CryptoQuant data shows that the exchange reserves of Bitcoin and Ethereum are on a downward trend. This comes at a time when Bitcoin is trading just below $70,000, up a moderate 2% in the past 24 hours. Ethereum, on the other hand, is holding up reasonably well above $3,800 with a small decline of 0.7% today.

Bitcoin & Ethereum market shifts

Recent analysis reveals that both Bitcoin and Ethereum have reached their lowest exchange reserve levels in years. This suggests a significant movement of these assets away from exchanges, possibly indicating a strategy among investors to hold onto their coins for a longer period of time.

Possible upcoming price movements

Despite the decline in exchange reserves for Bitcoin and Ethereum, late Glassnode data seeing a rise in the circulating supply of both cryptocurrencies. This sets the stage for possible price corrections if demand does not keep pace with increasing supply. However, current market indicators suggest that demand is keeping pace as there is no notable drop in prices despite growing supply.

Scarcity and price movements?

The reduced exchange reserves suggest that there are now fewer coins available for direct trading, which could indicate a possible price increase due to scarcity. The upcoming price movements will be crucial for both investors and traders to keep an eye on.

The post Are Bitcoin and Ethereum Exchange Reserves Really Running Out? appeared first on BLOX | News.