28,000 BTC Are Back On Exchanges And Traders Are Watching

Bitcoin has just shattered a widely anticipated scenario: that of a progressive shortage of BTC on exchanges. In just three weeks, the reserves available on centralized platforms have strongly rebounded, despite ETF demand. This turnaround reveals a reality more complex than a simple “supply shock” fueled by institutional investors. Where do these new bitcoins come from and what does this return of liquidity reveal about market balance? On-chain data and ETF flows provide several answers.

In Brief

A Rapid Reversal of On-Chain Crypto Reserves

On-chain analysis data published on August 17 by the firm Santiment Intelligence reveal a remarkably rapid change of direction regarding the amount of bitcoins deposited on exchange platforms. While exchange reserves had hit a low point on July 28 at around 1.304 million BTC, concluding six weeks of continuous withdrawal that had cut platforms by 33,000 coins since the peak on June 12 set at 1.337 million, the trend completely reversed.