The largest cryptocurrency in the world, Bitcoin’s price has been depreciating lately, however, there might be hope for the community as the BTC balance on cryptocurrency exchanges hits a 13-month low.
Bitcoin Headed Towards A Bull Run?
The world will remember March 2020 as the month that put the entire mankind in shackles. The pandemic caused destruction in large magnitudes to life as well as the economy. The price of the largest cryptocurrency, Bitcoin also witnessed a significant dip.
During March, another metric took a ride downhill and is still on the same journey. The Bitcoin balance on exchanges was at 2,912,856.358 on 12 March 2020, the same day, the price of Bitcoin plummeted down to the 4K zone. Even though the price of the coin eventually found its path to recovery, the balance on cryptocurrency exchanges was seen plunging.
As per the on-chain market analysis platform, Glassnode, the Bitcoin [BTC] balance on exchanges had hit a 13-month low. The balance on exchanges on 29 June 2020 stood at 2,629,751.011 BTC. Further nosediving down the previous 13-month low of 2,632,322.478 BTC which was recorded on 26 June 2020. Glassnode tweeted about the same.
The below chart reveals that San-Fransico based cryptocurrency exchange, Coinbase had the largest amount of 953,192.845 BTC stored in its platform. Huobi was right behind as it had a total of 363,646.936 BTC and the world’s largest cryptocurrency exchange, Binance had 268,864.360 BTC balance in its exchange.
Poloniex and Gemini had the least amount of BTC exchange balance of 48,801.34 and 89,668.13, respectively.
However, this inclines towards a positive attitude towards a potential bull run.
Ethereum Follows Suit
The depreciation cryptocurrency exchanges were experiencing in terms of exchange balance were not limited to Bitcoin. The second-largest cryptocurrency Ether [ETH] balance on exchanges had witnessed a 3-month low of 17,701,959.503. Glassnode revealed that the previous low was observed on 27 June 2020 after cryptocurrency exchanges had a balance of only 17,702,252.585 ETH.
Even though these charts suggest that the balance of the two largest cryptocurrencies on exchanges is low, this might be transcendent news for the assets. It is speculated that BTC, as well as ETH users, are HODL-ing instead of trading in anticipation of a bull run. Previously, right before Bitcoin hit an all-time high back in 2017, the exchange balance of the asset was seen faring low.
Luke has had a long interest in financial technology, especially cryptocurrency and blockchain. With a Bachelors degree in Journalism and Media, Luke is dedicating his writing skills for the digital currency sphere.He can be contacted at firstname.lastname@example.org