The amount of Bitcoin on centralized exchanges has fallen to its lowest level in six years, coinciding with the asset’s rise to a new all-time high.
Bitcoin Price Reaches New Heights
Bitcoin hit a new all-time high early Sunday, surpassing $125,700 on Coinbase, as reported by Tradingview. The previous record was $124,500 on August 14. Although Bitcoin dropped 13.5% by September 1, it has rebounded significantly as October began.
Nate Geraci, President of Nova Dius, noted that although Bitcoin reached a new high, many people are still unfamiliar with it. Analyst Rekt Capital suggested that if Bitcoin breaks $126,500, it could rise substantially.
Significant Drop in Exchange Balances
The total Bitcoin balance held by centralized exchanges fell to 2.83 million BTC on Saturday, according to Glassnode. This marks the lowest level since early June 2019, when Bitcoin was valued around $8,000.
CryptoQuant reported an even lower figure of 2.45 million BTC, which is a seven-year low. This decline reflects a significant withdrawal of over 114,000 BTC worth over $14 billion from exchanges in just two weeks.
Exchange Reports and Future Outlook
Matthew Sigel from VanEck indicated that some exchanges are running out of Bitcoin. He mentioned the potential for shortages as early as Monday morning, though he clarified that this is not financial advice.
Investor Mike Alfred shared insights from a recent conversation with a key player in the OTC market, suggesting that demand for Bitcoin may continue to grow.
