The Bitfinex Alpha Report reveals that bitcoin (BTC) reserves on centralized exchanges have dropped to levels last seen in early January 2018, with only 2.03 million BTC currently on exchanges. The report suggests a correlation between the decline in exchange reserves and increased crypto prices, indicating a potential bull run.
BTC reserves on exchanges have been decreasing since their peak in March 2020, around the time the asset's price began to rise. The high in reserves coincided with the beginning of a bull market, implying an inverse relationship between BTC's price and exchange reserves. As crypto prices increased, exchange reserves continued to decline, suggesting that the scarcity of BTC on trading platforms may be driving the price movement.
Despite the BTC price dip in November 2021 and the continued decrease in exchange reserves, many market indicators show that long-term holders and a large portion of short-term investors are currently in a HODL phase and are positioned to hold their assets for longer periods.
Bitfinex analysts note that investors across multiple cohorts are confident that BTC will not see a significant slump from its current price. Historically, a positive September has led to a bullish October, with volatility and futures market metrics pointing towards increased volatility and some upside.
BTC reserves on exchanges have been decreasing since their peak in March 2020, around the time the asset's price began to rise. The high in reserves coincided with the beginning of a bull market, implying an inverse relationship between BTC's price and exchange reserves. As crypto prices increased, exchange reserves continued to decline, suggesting that the scarcity of BTC on trading platforms may be driving the price movement.
Despite the BTC price dip in November 2021 and the continued decrease in exchange reserves, many market indicators show that long-term holders and a large portion of short-term investors are currently in a HODL phase and are positioned to hold their assets for longer periods.
Bitfinex analysts note that investors across multiple cohorts are confident that BTC will not see a significant slump from its current price. Historically, a positive September has led to a bullish October, with volatility and futures market metrics pointing towards increased volatility and some upside.