The total amount of Bitcoin exchange reserves has dropped to its lowest level in years after massive outflows have been seen since the US presidential election in early November led to a massive cryptocurrency market rally.
According to data from on-chain analytics firm CryptoQuant, over 171,000 BTC have moved off of cryptocurrency trading platforms since Republican presidential candidate Donald Trump won the election, leading to a market rally given his pro-crypto stance during the campaign.
The firm’s data notably shows there has been a steady decline in Bitcoin exchange reserves since the beginning of this year, as there were then around 3 million BTC on cryptocurrency exchanges. The figure has since plunged to around 2.64 million coins.
As CryptoGlobe reported, Bitcoin whales have been steadily accumulating over the last few weeks as BTC trades below the psychological resistance level around $100,000. CryptoQuant data shows that 16,000 BTC worth nearly $1.5 billion entered whale reserves in a single day late last month.
A lower amount of Bitcoin on exchanges suggests that there is less supply available on the market, which if coupled with steady or rising demand could lead to a cryptocurrency price rise.
The price of Bitcoin has been strolling to surpass the $100,000 psychological barrier after surging exponentially after Trump secured the US elections. The cryptocurrency is at the time of writing trading at $96.700 after moving up more than 40% in the last month.
While whales are accumulating, the total holdings of the spot Bitcoin exchange-traded fund (ETF) offered by the world’s largest asset manager, BlackRock, have grown to surpass the 500,000 BTC mark.
Another entity heavily accumulating the flagship cryptocurrency is Nasdaq-listed business intelligence firm MicroStrategy, which accumulated an additional 15,400 coins for $1.5 billion earlier this month to bring its total BTC holdings above the 400,000 threshold.
Featured image via Unsplash.
