Bitcoin supply held on exchanges has fallen to 13%, the lowest in 6 months, according to $4.- Ether exchange reserves dropped to 18% in June, the lowest on record.
- Market watchers said this suggested any sell-offs may be less pronounced.
The ratio of bitcoin held on exchanges versus total number of coins in circulation has fallen to 13% in July, its the lowest level in 6 months, according to data from crypto analytics group $4 on Tuesday.
Similarly, the amount of $4 held on exchanges as a percentage of total supply fell to just 18% in June, which is the lowest on record and the most recent figures from Santiment.
"The ratio of$4 supply on exchanges has encouragingly slid down to its lowest since early January. The six-month low is a promising sign, as it generally will indicate that there is a decreased risk of more major$4 selloffs," Santiment said on $4
This data calculates the level of reserves held on exchanges like
These reserves were high in May, around the time when the sell-off in bitcoin began to gather pace. Exchange flows can help signal what direction bitcoin is likely to head in the short to medium term.
"With more outflows from exchanges, a positive as it means people are holding coins to private wallets and fueling less selling pressure, it seems that the bearishness might be -slowly- reverting to a more supportive narrative," Justin d'Anethan, who is head of sales at crypto platform EQONEX, said.
Bitcoin was last up around 1.1% at $34,060 on the Coinbase exchange on Tuesday. It's recovered about 18% since late June's multi-month lows, but is still around 50% off the all-time high in April just above $65,000.
Ether was last trading almost 5% up on the day on the Kraken exchange around $2,306. It's up by around 35% from three-month lows hit in June, but down 45% from May's record highs.
Institutional investors have poured $39 million into bitcoin in the week to July 5th, according to $4 from CoinShares, highlighting how the previous dip in price has encouraged big players back into the market. Ether saw inflows of $17.7 million in the latest week, partially reversing a run of outflows, according to the data.
For a more in-depth discussion, come on over to Business Insider Cryptosphere>$4 — a forum where users can deep dive into all things crypto, engage in interesting discussions and stay ahead of the curve.
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