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Bitcoin exchange platforms have witnessed a notable surge in transaction volume over 2021. As the new year began, it is observed that the reserve of the platforms are back near record lows. Such data is observed following the year’s spark of renewed appetite among buyers. According to data from CryptoQuant, an on-chain analytics firm, reserves across more than 20 crypto assets exchanges are 2.308 million BTC as of Tuesday. The flagship cryptocurrency is coming off trading platforms again as prices plunge into Q1 2022.
Bitcoin exchange return declines
Late last year, the crypto market witnessed a macro low of 2.303 million coins left on Bitcoin exchange platforms. According to CryptoQuant data, the record on books took a brief uptick to 2.334 million.
Institutional players are now returning to the Bitcoin market after the holiday period. Still, the downtrend in reserves has continued. According to experts it is the line with expectations that whales would step in the beginning quarter of this year.
BTC exchanges balance data is debatable
This week in the cryptocurrency market, Bitcoin exchange data has become a significant debatable topic. Different data providers use varying numbers of exchanges platform and wallet, which makes the data barely comparable. CryptoQuant provides data of 21 exchange platforms, with 18 monitored by Glassnode and five CoinMetrics.
Another platform, Cryptorank has put the balance at just 1.3 million coins on Christmas Eve. Noting the data of these platforms, it seems the trend may also differ, as some of the platforms have seen an overall reduction in their balance over the past month. Meanwhile, several other BTC exchanges have witnessed notable increments.
Notably, such was the case with Huobi Global, one of the leading BTC platforms. The exchange was obliged to deregister from China, as users by the end of 2021 were in line with regulations.
Data shows long-term health
In a recent discussion with CryptoQuant, David Puell, the creator of the well-known Puell Multiple indicator, highlighted his thoughts. Puell cited what he believes regarding upcoming market participant behaviour.
According to Puell, the relaxation of the most prominent crypto coin over last year versus the one of 2019 has kept retailers and their FOMO away. He belives that he thinks that this is a long-term healthy signal.
