Bitcoin Exchange Reserve Has Now Reached An Equilibrium After 2 Years Of Downtrend

On-chain data shows the percentage of Bitcoin supply on exchanges seems to have plateaued over the past few months, ending an overall downtrend that lasted about two years. Bitcoin Exchange Reserve Starts Moving Sideways As Inflow And Outflows Attain Equilibrium As per the latest weekly report from Glassnode, the percentage of the total BTC supply on exchanges looks to have ended its decline recently and is now moving sideways. The “exchange reserve” is an indicator that measures the total amount of Bitcoin stored in wallets of all exchanges. When the value of this metric rises, it means exchanges are observing net inflows right now. Such a trend can be bearish for the price of the coin as it represents an increase in the sell supply of the crypto. On the other hand, when the reserve’s value decreases, it implies outflows are overwhelming the inflows at the moment. This trend may turn out to be bullish for the value of Bitcoin as it may be a sign of accumulation from holders. Related Reading | Risk Aversion Pulls Crypto Market Down, Bitcoin Still Below $40K Now, here is a chart that shows how the percentage of the total supply that the exchange reserve accounts for has changed over the past couple of years: Looks like the value of the indicator seems to have moved sideways recently | Source: Glassnode's The Week Onchain - Week 10, 2022 As you can see in the above graph, the metric had an all-time hi...