Bitcoin’s exchange balances have dropped dramatically to the lowest level in six years, as over $14 billion exited centralized platforms in just two weeks. The cryptocurrency reached a milestone price above $125,000, marking a significant increase from its previous high of $124,500 recorded in mid-August.
Bitcoin is showing strong recovery momentum. Following a brief decline of 13.5% in early September, it has rebounded as the month of ‘Uptober’ commenced.
“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 the price will surge higher quickly,” analyst Rekt Capital stated before the recent peak.
BTC prices reach a new peak above $125,000. Source: Tradingview
Exchange balances drop to six-year low
The Bitcoin balance on centralized exchanges has plummeted to 2.83 million BTC, representing a six-year low according to Glassnode. The last occurrence of such low figures was in June 2019 when Bitcoin’s price hovered around $8,000 amidst a bear market.
According to another analytics platform, CryptoQuant, a slightly lower figure of 2.45 million BTC indicates an even longer absence of coins on exchanges, marking a seven-year low.
The trends indicate that as Bitcoin is withdrawn from exchanges, many holders are opting for long-term custody, signaling less likelihood for immediate selling.
BTC balance on exchanges dropped to 2019 levels. Source: Glassnode
Exchanges running dry
“Hearing exchanges are out of Bitcoin,” remarked Matthew Sigel from VanEck.
“Monday 9:30 am might signal the first official shortage,” he cautioned, framing his statement with a note that it isn’t financial advice.
Investor and trader Mike Alfred disclosed, “I spoke with the person managing the most significant OTC desk, and he indicated they could entirely run out of Bitcoin within two hours of futures opening tomorrow, unless prices jump to between $126,000 and $129,000. Things are getting intense.”
