BITCOIN

Reserves have not declined since October 2011


Bitcoin spot reserves continue the recent downward trend as prices now stand at their lowest level since October 2017. This shows that the shock of supply is strengthening its strength.

Bitcoin supply shock narrative increases further as spot reserves decline to October 2017 levels

As indicated by a CryptoQuant post, BTC spot reserves have seen a downward trend since October 2017.

Spot Reserve is a bitcoin indicator that shows the total coins in the wallet of all spot exchanges.

When the value of the metric increases, it means that the supply of BTC for selling and buying Altcoin has increased now. Such a change could lower the value of the currency.

On the other hand, the supply of BTC decreases on the spot exchange while the value of reserves decreases. This behavior can be bullish for the currency in the long run.

Related Reading | On-chain data shows Bitcoin investors are reluctant to sell at this level

Now, here is a chart that shows the price trend of the index over the last few years:

BTC spot reserves continue to decline | Source: CryptoQuant

The graph above shows some interesting trends in the price of the indicator. First, during the 2017 bull race, the reserve has grown and achieved very high standards.

Since then, these high values ​​have remained as a curve for most of the year except for extending to around 2019 where the metric saw more values ​​before returning to the previous level in early 2020.

Related Reading | The CEO of Soros Fund Management has confirmed that the family office has been invested in Bitcoin

When 2020 hits, however, the trend changes and BTC spot reserves begin to decline. This continued until 2021, where values ​​declined even more rapidly.

Now, the index has reached the same level as in October 2017.

Such a reduction in reserves means a supply shock is being created in Bitcoin. This can be bullish for crypto.

BTC price

At the time of writing, the price of Bitcoin has risen 15% in the last seven days, to close at $ 54.3k. In the last one month, crypto has gained 18% value.

The following chart shows the trend of currency prices in the last three months:

Bitcoin price list

BTC's price shows a big move up | Source: BTCUSD on TradingView

The currency’s latest sharp move crossed the $ 55k level for the first time since May this year. Today, the crypto is up to $ 55.9k before falling below the current price mark. If the supply shock continues like this, it will probably be beneficial for the price of crypto in the long run.



Source link

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button