The amount of Bitcoin held on centralized exchanges plunged to its lowest level in six years as assets rose to an all-time high.
Bitcoin hit a new all-time high on Sunday morning, just over $125,700 on Coinbase, according to TradingView.
The previous peak was on August 14th at $124,500 on Coinbase. Bitcoin (BTC) was rebounded by 13.5% by September 1, but recovered strongly over the past week when “Uptober” began.
“Bitcoin is the greatest new hit of all time…and most people still don’t even know what Bitcoin is,” commented Nova Dius president Nate Gelach.
“If Bitcoin can convincingly beat $126,500, the price could go much higher and faster,” analyst Rect Capital said before the latest price peak.
Exchange balances fall to the lowest level in six years
The centralized exchange’s total Bitcoin balance fell to 2.83 million BTC on Saturday, the first in six years, according to GlassNode.
The last one with fewer coins stored on the exchange was early June 2019, with assets trading around $8,000 at the depths of the bear market.
Blockchain analytics platform Cryptoquant is the lowest in seven years due to a slightly lower total replacement reserve ratio of 245 million BTC.
Both platforms show that BTC exchange balances have fallen sharply over the past few weeks. More than $14 billion in BTC have left the exchange for over the past two weeks, according to GlassNode.
When Bitcoin moves centralized exchanges to the Ministry of Independence, Institutional Funds, or Digital Asset Treasury, it suggests that holders plan to keep the coins long term rather than selling them. Bitcoin sitting in exchange is considered a “available supply” that can be liquidated at any time and appear in the market.
The running replacement is dry
“Aural exchange is out of Bitcoin,” said Matthew Siegel, Vaneck’s head of digital assets research on Saturday.
“9:30am on Monday could be the first official shortage,” he said.
Investor and trader Mike Alfred said Sunday morning, “I just got off the 20-minute call with the guy who runs my most important OTC desk.”
“He says at the current pace, unless the price goes from $126,000 to $129,000, he will be completely out of Bitcoin to sell within two hours of the future that will take place tomorrow.
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