After reaching an all-time high in March 2020 of 3.14 million BTC, bitcoin (BTC) inventories on exchanges have decreased by 22%. According to figures from Glassnode, there are currently 2.45 million BTC on exchanges, the same level that was recorded a little more than three years ago, in August 2018.
From According to data from Glassnode, an all-time high for the BTC balance on exchanges was reached on March 16, 2020, of 3,137,759 BTC. The following graph shows the evolution of the BTC balance of the exchanges since the beginning of 2018.
The maximum of 2020, coincides with the fall of the cryptocurrency market, in conjunction with the collapse of the market of actions, when the World Health Organization (WHO) made the existence of the Covid pandemic official.
The current level of inventories of 2.45 million BTC, matches the value of a little over three years ago, on August 22, 2018, as can be seen in the graph.
This year 145,000 BTC have left the exchanges, which represents a decrease on of 5.59%. Starting in April of this year, when the previous all-time high of the bitcoin price was established, there was an increase in inventories. This boom, however, only lasted three months, as from July the downward trend returned, which continues to this day.
Distribution of balances by exchange
The following graph offers the balance evolution, discriminating by exchange. Currently, Coinbase has 689,951 BTC, or 28.1% of the total. It follows Binance, with 526,581 BTC, or 21.4% and Gemini with 306,830 BTC, which represents 12.5% of the total balance. These three exchanges have 1,523,362 BTC, which represents 62% of the total balance.
Bitfinex, Kraken and Bittrex are the exchanges that follow in descending order, with a cumulative 484,731 BTC, or 19.7% of the total balance. In summary, the six exchanges mentioned have almost 82% and a total of 2,008,0893 BTC.
In March 2020, the distribution was different, as Coinbase had 32.2% of the total and Binance barely accounted for 8.5%, while Gemini had barely 4.1% of the total balance. In other words, Coinbase’s dominance has decreased to 28%, while Binance and Gemini grew and today account for more than a third of the total balance.
On average, about 470 BTC per day have left the exchanges this year, which indicates that the accumulation of BTC has been sustained. The so-called supply shock, associated with less availability of BTC in the market, follows an increasing trend. Bitcoin analyst Will Clemente stated on his Twitter account last Tuesday, November 2, that in the last week there had been a new increase in the supply shock , as shown in the following graphic.
The area shaded in pink shows the supply shock in decline since mid-April, when the previous all-time high of the pre cio, until the end of May. This decline coincides with a sales phase, which gives way to the restart of accumulation. Clemente highlights that the supply shock returns to the highs of mid-April, and is at its highest value since the end of 2017 , which indicates that the process of consolidation of bitcoin could be in its final phase, according to that analyst.
There is a coincidence between the decreasing value of the BTC balance in the main exchanges, with the growth of illiquidity or the supply shock, which tends to push prices up.