Reserves of BTC on Exchanges Have Plummeted!

Source: CryptoQuant

TL;DR

• The reserves of BTC on exchanges is the lowest it’s been in years, which suggests investors are buying and holding for the long term rather than planning to make short term trades.

Full Story

The reserves of BTC on exchanges is the lowest it’s been in years.

Which is a good thing!

Here’s what we mean:

Typically, people use exchanges to buy and sell crypto (or onboard/offboard their fiat over to crypto).

Once you’ve bought whatever coin you’re in the market for (e.g. BTC), you’ve got a few options - keep it on the exchange (exposing it to the exchange itself collapsing a la FTX, or other cyber hacks); or transfer it off the exchange to your own self-custody wallet (the safer of the two options).

If you’re day trading, chances are you won’t be sending it back and forth between the exchange and your wallet (paying a gas fee each time).

But, if you’re looking to buy and hold for the longer term, transferring it off the exchange to your own self-custody wallet is easily the best option.

Which is exactly what people are doing (see header image 👆).

Just another positive sign for crypto long term.

💎 🙌