Bitcoin supply on the stock exchanges drops to a three-year low

The amount of Bitcoin on the exchanges is at its lowest level in three years, suggesting investors are not preparing to sell. Ethereum is also at a two-year low when it comes to balances on the exchanges.

Data from the cryptocurrency market data platform Glassnode shows that the Bitcoin wallet is at its lowest level in three years. The balance held on the exchanges was 2.46 million BTC at the end of October 2021. Compared to the second quarter of 2021 when the stock market balance was over 2.47 million BTC, this may indicate some bullish signs for the market.

Bitcoin exchange balances: Glassnode

Historically, Bitcoin balances have been low when the market was on the cusp of a good run – or at least firmly believed in its current valuation. Bitcoin trading balances tend to rise when the market experiences a prolonged sell-off period as investors top up their Bitcoins on the exchanges.

The last time the stock market balance was this low was in December 2018. The market stagnated in the months following this period before finally witnessing another massive bull run that took it to new all-time highs. Long-term Bitcoin holders also seem to be piling up, according to Kraken, adding further credibility to the idea of ​​growth in the near future.

Ethereum is also experiencing a similar situation. The ETH balances on the stock exchanges are at a two-year low of 14.4 million ETH, which in turn bodes well for the market.

The market seems to be in a good position and is consolidating at the current price level. At over $ 60,000 and $ 4,200, respectively, BTC and ETH have risen sharply since late September 2021, with both being around $ 42,000 and $ 2,900, respectively.

On the way to the fourth quarter of 2021, where is Bitcoin?

There have been numerous models in the past that have predicted some high Bitcoin valuations by the end of 2021. One of the most notable of these is the PlanB Bitcoin stock-to-flow model, which forecast a target of $ 135,000 by year-end in the worst case scenario. BTC’s price isn’t quite there yet, but with its current valuation of over $ 62,000, it’s still not too far off.

Slightly longer forecast periods, as suggested by Tim Draper, have Bitcoin’s price target at $ 250,000 by 2023. But the market is fickle and tends to move as the mood takes you – but always seemingly forwards.

Bitcoin, and the market in general, tend to rise in rapid breakouts, as past bullish prices have shown. It could very well be that BTC will see a sudden bull rally to hit that number. There is no way to be sure, but general indicators like that of Bitcoin on the exchanges seem to suggest that the market could be in a good growth period.

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