Analyst: Exchange BTC holdings drop to August 2019 levels

The total amount of Bitcoin held across all exchanges has fallen to approximately 2,666,753 BTC, a level not seen since August 2019, according to a CryptoQuant contribution by cryptocurrency analyst thechessONCHAIN. The analyst noted that while BTC's price is about eight times higher than it was in August 2019, market indicators have shifted from a bullish to a bearish zone. He wrote that while a decrease in exchange holdings signifies a reduction in the immediately sellable supply, a price increase requires corresponding demand. In 2019, the structure of the bull cycle generated this demand, whereas the current demand outlook is uncertain. He explained that although a supply shortage persists, a new demand driver exists in the form of spot ETFs, and exchange holdings have continued to decline even since their launch.