Declining exchange BTC reserves may support further gains: CryptoQuant

Bitcoin holdings on cryptocurrency exchanges have continued to decline, potentially creating conditions favorable for further price gains, according to a CryptoQuant analysis. CryptoQuant researcher Rei Researcher said in a recent report that exchange-held Bitcoin fell to 2.67 million BTC from 2.8 million BTC in February. If buying demand recovers while exchange supply remains low, the resulting supply-demand imbalance could support a longer-term price rise, Rei Researcher said. The researcher added that the continued decline in exchange reserves despite Bitcoin’s recent rebound from local lows suggests the tradable supply available in the market is still shrinking.