Bitcoin exchange balances trend back to historic lows as BTC withdrawals resume in January

Bitcoin
(BTC)
exchange
reserves
are
back
near
record
lows
as
2022
sparks
renewed
appetite
among
buyers.

Data
from
on-chain
analytics
firm
CryptoQuant

shows

reserves
across
21
exchanges
at
2.308
million
BTC
as
of
Jan.
4.

Exchanges
return
to
overall
BTC
balance
downtrend

Late
December
saw
a
macro
low
of
2.303
million
BTC
left
on
exchanges’
books,
CryptoQuant
recorded,
before
a
brief
uptick
to
2.334
million.


Bitcoin
exchange
reserves
chart.
Source:
CryptoQuant

As
institutional
entities
return
to
the
market
after
the
holiday
period,
however,
the
downtrend
has
resumed;
this
is
in
line
with

expectations

that
larger-volume
buyers
would
step
in
beginning
in
Q1.

Exchange
balance
data
is
a
topic
of
some
debate
this
week.
Different
statistics
sources
use
varying
numbers
of
exchanges
and
wallets,
resulting
in
data
that
is
barely
comparable.

CryptoQuant’s
21
exchanges,
for
example,
compete
with
18
monitored
by
Glassnode
and
five
by
CoinMetrics.

Another
resource,
Cryptorank,
put
the
balance
at

just
1.3
million
BTC

on
Christmas
Eve.

Depending
on
the
platforms
included,
the
trend
may
also
be
different,
as
some
exchanges
have
seen
an
overall
reduction
in
their
balance
over
the
past
month,
while
others
have
seen
an
increase.

As
Cointelegraph
reported,
this
was
the
case
with
Huobi
Global,
which
was

obliged
to
deregister
Chinese
mainland
users

by
the
end
of
2021
in
line
with
regulations.

Bigger
fish
to
run
the
show

In
a
discussion
with
CryptoQuant
last
week,
analyst
David
Puell,
creator
of
the
well-known
Puell
Multiple
indicator, revealed his
thoughts
on
upcoming
market
participant
behavior.



Related: New
year,
same
‘extreme
fear’

5
things
to
watch
in
Bitcoin
this
week

The
“relaxed”
nature
of
Bitcoin
in
2021
versus,
for
example,
2019,
has
kept
retail
investors
and
their
“FOMO”
away.

“I
think
this
is
long-term
healthy,”
he
said.

“The
market
is
mostly
going
to
be
owned
by
institutional
players,
especially
in
month-to-month
price
movements,
with
some
profit-taking
from
early
adopters
but
a
much
more
diminished
role
coming
from
retail
players.”

read original article here