{"id":91905,"date":"2020-10-18T11:21:00","date_gmt":"2020-10-18T08:21:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/seller-shortage-bitcoin-exchange-reserves-plunge-as-bitmex-bleeds-btc\/"},"modified":"2020-10-18T11:21:00","modified_gmt":"2020-10-18T08:21:00","slug":"seller-shortage-bitcoin-exchange-reserves-plunge-as-bitmex-bleeds-btc","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/seller-shortage-bitcoin-exchange-reserves-plunge-as-bitmex-bleeds-btc\/","title":{"rendered":"# Seller shortage? Bitcoin exchange reserves plunge as BitMEX bleeds BTC"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a422b6101f49\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a422b6101f49\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/seller-shortage-bitcoin-exchange-reserves-plunge-as-bitmex-bleeds-btc\/#Is_the_number_of_Bitcoin_sellers_dropping_amidst_an_accumulation_phase\" >Is the number of Bitcoin sellers dropping amidst an accumulation phase?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/seller-shortage-bitcoin-exchange-reserves-plunge-as-bitmex-bleeds-btc\/#Other_supply_metrics_indicate_higher_HODLer_activity\" >Other supply metrics indicate higher HODLer activity<\/a><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong># Seller shortage? Bitcoin exchange reserves plunge as BitMEX bleeds BTC <\/strong>&#8221;<\/p>\n<div data-v-5a136f3a=\"\">\n<p dir=\"ltr\">Bitcoin (BTC) exchange reserves are continuously plummeting as analysts pinpoint the trend to a shortage of sellers. Since the March crash, the reserves on exchanges rapidly fell from 2,950,000 BTC to 2,700,000 BTC.<\/p>\n<p>Within merely seven months, a 250,000 BTC fall in exchange reserves signifies a $2.85 billion decline. Behind the steep trend could be two major factors: a decline in sellers and lower trust toward exchanges.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" width=\"1068\" height=\"601\" alt=\"Bitcoin reserves on exchanges\" src=\"https:\/\/s3.cointelegraph.com\/storage\/uploads\/view\/0df03153703d372c41c8f68fca559d85.jpg\" title=\"Bitcoin reserves on exchanges\"\/><\/p>\n<p dir=\"ltr\" style=\"text-align: center;\"><em>Bitcoin reserves on exchanges. Source: <a rel=\"nofollow noopener noreferrer\" target=\"_blank\" href=\"https:\/\/studio.glassnode.com\/explorer\">Glassnode<\/a><\/em><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Is_the_number_of_Bitcoin_sellers_dropping_amidst_an_accumulation_phase\"><\/span>Is the number of Bitcoin sellers dropping amidst an accumulation phase?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Analysts mainly attribute the sustained drop in Bitcoin exchange reserves to an overall shortage of sellers in the market.<\/p>\n<p>As retail sellers refrain from selling BTC at current prices, institutions are also acquiring more BTC. The simultaneous drop in selling pressure and an increase in buyer demand is an optimistic trend for Bitcoin.<\/p>\n<p>A pseudonymous trader known as \u201cOddgems\u201d said the data shows Bitcoin is likely moving from exchanges to non-custodial wallets. If so, it indicates that investors are moving their funds to hold for a longer period. He <a rel=\"nofollow noopener noreferrer\" target=\"_blank\" href=\"https:\/\/twitter.com\/oddgems\/status\/1317513267934232578\">said<\/a>:<\/p>\n<blockquote>\n<p>\u201cMore and more #Bitcoin getting out from exchanges and most probably being transferred to non-custodial wallets. This suggests slightly lower liquidity and lower selling pressure going forward.\u201d<\/p>\n<\/blockquote>\n<p>Michael van de Poppe, a full-time trader at the Amsterdam Stock Exchange, echoed the stance.\u00a0<\/p>\n<p>He emphasized that BTC outflows from exchanges are growing as cash reserves from institutions are flowing into Bitcoin. He <a rel=\"nofollow noopener noreferrer\" target=\"_blank\" href=\"https:\/\/twitter.com\/CryptoMichNL\/status\/1316697247451672576\">noted<\/a>:<\/p>\n<blockquote>\n<p>\u201cTo be honest, more and more $BTC going from exchanges towards cold wallet storage. Big listed companies allocating cash reserves to $BTC. Is incredibly bullish.\u201d<\/p>\n<\/blockquote>\n<p>The confluence of stagnant retail outflows from Bitcoin and the consistent demand from institutions buoy the <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/general\/\" data-internallinksmanager029f6b8e52c=\"3\" title=\"General\" target=\"_blank\" rel=\"noopener\">general<\/a> sentiment around BTC.\u00a0<\/p>\n<p dir=\"ltr\">Dan Tapiero, the co-founder of 10T Holdings, similarly said that \u201cshortages of Bitcoin\u201d is possible due to the surging institutional interest.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Other_supply_metrics_indicate_higher_HODLer_activity\"><\/span>Other supply metrics indicate higher HODLer activity<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>According to Glassnode, a large portion of the Bitcoin supply is stored in \u201caccumulation addresses.\u201d These addresses represent users who never moved BTC from their wallets, who are likely storing BTC for the long term.<\/p>\n<p>When \u201cHODLing\u201d activity is high, which refers to holding onto BTC for prolonged periods, it typically indicates the start of an accumulation phase. Glassnode <a rel=\"nofollow noopener noreferrer\" target=\"_blank\" href=\"https:\/\/twitter.com\/glassnode\/status\/1316381633180766241\">said<\/a>:<\/p>\n<blockquote>\n<p dir=\"ltr\">\u201cBitcoin accumulation has been on a constant upwards trend for months. 2.6M $BTC (14% of supply) are currently held in accumulation addresses. Accumulation addresses are defined as addresses that have at least 2 incoming txs and have never spent BTC.\u201d<\/p>\n<\/blockquote>\n<p>The positive fundamental on-chain metrics supplement the favorable technical structure of Bitcoin. Despite various events that could have <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>lied selling pressure on BTC, including the BitMEX probe and OKEx withdrawal suspension, BTC remains above $11,400.<\/p>\n<p>The BitMEX and OKEx controversy also led exchange reserves to decline sharply, possibly spooking traders. Although BitMEX swiftly <a rel=\"nofollow noopener noreferrer\" target=\"_blank\" href=\"https:\/\/twitter.com\/lopp\/status\/1311726096065257472?s=20\">processed withdrawals<\/a> and OKEx wallets show no outflows, the regulatory uncertainty was sufficient to cause exchange reserves to slip.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" width=\"1200\" height=\"726\" alt=\"The BitMEX BTC supply\" src=\"https:\/\/s3.cointelegraph.com\/storage\/uploads\/view\/5362afd0ffdc95629eb231580139644d.jpg\" title=\"The BitMEX BTC supply\"\/><\/p>\n<p dir=\"ltr\" style=\"text-align: center;\"><em>The BitMEX BTC supply. Source: <a rel=\"nofollow noopener noreferrer\" target=\"_blank\" href=\"https:\/\/twitter.com\/lopp\/status\/1313456228551409664?s=20\">CoinMetrics<\/a><\/em><\/p>\n<p>In early October, technical analysts pinpointed the $11,100 to $11,300 range as a critical short-term resistance range. BTC has been relatively stable above the said range, which technically is a positive sign for renewed momentum.\n<\/p><\/div>\n<p><script async src=\"\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener noreferrer\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener noreferrer\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/seller-shortage-bitcoin-exchange-reserves-plunge-as-bitmex-bleeds-btc\" target=\"_blank\" rel=\"noopener noreferrer\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;# Seller shortage? Bitcoin exchange reserves plunge as BitMEX bleeds BTC &#8221; Bitcoin (BTC) exchange reserves are continuously plummeting as analysts pinpoint the trend to a shortage of sellers. Since the March crash, the reserves on exchanges rapidly fell from 2,950,000 BTC to 2,700,000 BTC. Within merely seven months, a 250,000 BTC fall in exchange&#8230;<\/p>\n","protected":false},"author":1,"featured_media":91906,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/s3.cointelegraph.com\/storage\/uploads\/view\/1fed0ad92ef1a84f03d23740a5d89b73.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74862,74993,73785],"class_list":["post-91905","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-bitcoin","tag-bitmex","tag-markets"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/91905","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=91905"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/91905\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/91906"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=91905"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=91905"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=91905"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}