Bitcoin Whales Buy Surplus BTC as Exchange Balances Drop

Bitcoin Whales Buy Surplus BTC as Exchange Balances Drop

Bitcoin (BTC) is being aggressively bought at prices close to $30,000, as bidders begin to absorb liquidity from short-term sellers.

Data from the CryptoQuant on-chain monitoring resource shows that Since the end of December, Bitcoin exchanges have started to dump their BTC reserves once again..

BTC draws attention for its attractiveness at current levels

After a period where traders sent BTC to exchanges, possibly to sell or to hold aside to part with further losses, exchanges are now seeing higher total outflows than inflows.

Between December 7 and December 28, 2021, BTC reserves of the 21 major platforms monitored by CryptoQuant increased from 2,396 million to 2,428 million BTC.

Thereafter, the long-term downtrend resumed, and as of Monday, the exchange count stood at 2.366 million BTC., even though spot price action is at a six-month low.

Chart of Bitcoin reserves against the BTC/USD pair. Source: CryptoQuant

For its part, the older whales, despite showing some impatience in recent years, are still apt to cause changes in the price trendCryptoQuant CEO Ki Young Ju believes.

“It appears that BTC has been sold to new players at the highs or lows,” he said in a series of tweet about the topic, noting that institutions have likely been the biggest buyers since 2020.

Whales go for (another) dive

Although it is common knowledge, exchange balance trend now matches palpable on-chain demand from major investors.

As the CC15Capital Twitter account noted this week, the run to $33,000 was accompanied by multimillion-dollar BTC purchases from one particular wallet.

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Since August, the account has amassed over $1 billion worth of BTC from an initial balance of zero.

The phenomenon comes amid a firm decision by long-term holders not to sell. As Cointelegraph reported, coins that haven’t moved in a year or more now make up 60% of the global BTC supply.

For its part, whale build-up has been evident elsewhere in the aftermath of the $69,000 drop from all-time highs.

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