Fewer Bitcoin investors and users are sending their BTC to crypto exchanges. This is according to data from CryptoQuant that highlights that the Bitcoin inflow transaction count of all crypto exchanges has hit a three-year low.
The team at CryptoQuant shared this information via the following tweet with an accompanying chart highlighting the drop in Bitcoin transactions into exchanges.
Fewer people are depositing $BTC into exchanges.$BTC inflow transaction count of all exchanges (7-day moving average) hits the three-year low.https://t.co/TDmLoSlfYQ pic.twitter.com/Jud4vRabqa
— CryptoQuant.com (@cryptoquant_com) October 31, 2020
Bitcoin Stored on Exchanges Hits a 2 Year Low
At the same time, the amount of Bitcoin stored on crypto exchanges has hit a two year low. This fact was highlighted by the team at Unfolded via the following tweet which includes a chart from Glassnode demonstrating the fact.
#Bitcoin balance on exchanges hits 2 year low
data: @glassnode pic.twitter.com/fY4Jm3r4QS
— unfolded. (@cryptounfolded) October 31, 2020
Less Bitcoin to Go Around
In an earlier analysis, it was pointed out that prominent CEOs and publicly listed companies such as MicroStrategy are quietly scooping up the Bitcoin in circulation. A drop in the amount of Bitcoin being sent to exchanges and low BTC balances on the same platforms is proof that there is massive accumulation by institutional investors and high-net-worth individuals.
As a result, the amount of Bitcoin available for retail traders is bound to continue diminishing by the day and will ultimately result in BTC mooning as demand grows with a reducing supply.
Bitcoin Briefly Breaks $14k
With respect to Bitcoin mooning, earlier today, the King of Crypto pushed hard above the $13,800 and $14k resistance zones to print a 2020 high of $14,105 – Binance rate. However, as soon as this value was reached, the price of Bitcoin fell to the $13,600 price area only to stabilize once again above $13,800.
The quick drop down and subsequent bounce is a clear indicator that buying demand for Bitcoin is at a high level. This means that Bitcoin will most likely close the month of October above $13,600 thus returning BTC back to bullish territory last seen in June 2019.
The current bullishness carries with it greater momentum than that seen in 2019 given the fact that institutional investors are scooping up as much Bitcoin as they can find. Therefore, it might be possible for Bitcoin to attempt $17k or even $20k before the end of the year.
- Bitcoin inflows into crypto exchanges have hit a three year low
- Bitcoin balances on exchanges have also hit a 2 year low
- The reduction in both cases, hints of continual confidence in the future value of BTC
- Bitcoin’s scarcity is finally kicking in after halving
- Bitcoin briefly tested $14,100 before falling back to $13,600 then stabilizing above $13,800
- Today’s monthly close will be a very bullish one for Bitcoin