Bitcoin reserves at lowest point of the year

The amount of available Bitcoin on stock markets has fallen to its lowest level since the beginning of the year. This could be a positive signal for stock price movement.

Bitcoin reserves on trading platforms fell to the lowest point since the beginning of the year, reports the on-chain data service Cryptoquant.

According to Cryptoquant, the available supply now stands at 2.26 million Bitcoin, representing a drop of about 13 percent since the beginning of the year.

Cryptoquant analyst "Gaah" suggests that this may "indicate reduced selling pressure." This, in turn, "could promote a bull market, provided demand also continues to rise."

Another explanation could be the "increasing acceptance of self-storage strategies." As investors more often manage the storage of their own Bitcoin on wallets, there are also fewer Bitcoin available on exchanges.

This indicates that "investors are more interested in holding assets for the long term." This trend could contribute to the stabilization of the stock price trend. With the decline in stock market reserves, there is "less liquidity for immediate selling."

The result would be that the market becomes "more resilient" and "less prone to large panic sales."

However, the figures measured by Cryptoquant are subject to debate. According to data from data platform Glassnode, the supply is currently around three million Bitcoin. The previous year low was in June, according to them.