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Home Tech Crypto Seller shortage? Bitcoin exchange reserves plunge as BitMEX bleeds BTC

Seller shortage? Bitcoin exchange reserves plunge as BitMEX bleeds BTC

Document Analysis NLP IA

532
WORDS

WORDS
2:39
Reading Time

Reading Time
neutral
sentiment

Sentiment0.084992544492544
objective
redaction

Subjectivity0.4687291967292
probably it's an affirmation
Affirmation0.465625

Highlights

RELEVANT
FREQ, RAKE or TFIDF
Entity
ORG
Entity
PERSON
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PRODUCT
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Key Concepts (and relevance score)

Summary (IA Generated)

Bitcoin (BTC) exchange reserves are continuously plummeting as analysts pinpoint the trend to a shortage of sellers.

Within merely seven months, a 250,000 BTC fall in exchange reserves signifies a $2.

Is the number of Bitcoin sellers dropping amidst an accumulation phase?.

Analysts mainly attribute the sustained drop in Bitcoin exchange reserves to an overall shortage of sellers in the market.

As retail sellers refrain from selling BTC at current prices, institutions are also acquiring more BTC.

The simultaneous drop in selling pressure and an increase in buyer demand is an optimistic trend for Bitcoin.

A pseudonymous trader known as “Oddgemssaid the data shows Bitcoin is likely moving from exchanges to non-custodial wallets.

He emphasized that BTC outflows from exchanges are growing as cash reserves from institutions are flowing into Bitcoin.

”.

The confluence of stagnant retail outflows from Bitcoin and the consistent demand from institutions buoy the general sentiment around BTC.

According to Glassnode, a large portion of the Bitcoin supply is stored in “accumulation addresses.

” These addresses represent users who never moved BTC from their wallets, who are likely storing BTC for the long term.

When “HODLing” activity is high, which refers to holding onto BTC for prolonged periods, it typically indicates the start of an accumulation phase.

2.

6M $BTC (14% of supply) are currently held in accumulation addresses.

The BitMEX and OKEx controversy also led exchange reserves to decline sharply, possibly spooking traders.

Although BitMEX swiftly processed withdrawals and OKEx wallets show no outflows, the regulatory uncertainty was sufficient to cause exchange reserves to slip.

The BitMEX BTC supply.


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