As Bitcoin reaches a new all-time high, the balance held on centralized exchanges has dramatically decreased, dropping to levels not seen in six years. Bitcoin’s value peaked at just above $125,700 on Coinbase, surpassing the previous record of $124,500 on August 14 and recovering sharply after a 13.5% decline by September 1, coinciding with the start of ‘Uptober’.
“Bitcoin hits new all-time high … And most people still don’t even know what Bitcoin is,” commented Nova Dius President Nate Geraci.
“If Bitcoin is able to convincingly break $126,500, then chances are price will go a lot higher and quickly,” said analyst Rekt Capital prior to the new peak.
The amount of Bitcoin stored on centralized exchanges has plummeted to 2.83 million BTC, the lowest since early June 2019 when Bitcoin traded near $8,000 during a bear market. Other analytics platform CryptoQuant reported slightly lower reserves at 2.45 million BTC, indicating a seven-year low.
More than $14 billion worth of Bitcoin, exceeding 114,000 BTC, has been withdrawn from exchanges recently, implying that market participants may intend to hold their assets rather than liquidate them.
“Hearing exchanges are out of Bitcoin,” stated VanEck’s Matthew Sigel, foreseeing a potential shortage in coming hours.
“He says at the current pace, they will be completely out of Bitcoin to sell within two hours of futures opening tomorrow, unless the price goes to $126,000 to $129,000. Things getting wild.”
