Tag: Exchange Reserves

Bitcoin Undervalued at $85K: On-Chain Metrics Signal Strong Accumulation

Fresh analysis from CryptoQuant suggests Bitcoin (BTC) may be significantly undervalued at current price levels, with multiple on-chain metrics pointing to sustained accumulation patterns and bullish market structure. This comprehensive analysis comes as technical patterns increasingly mirror the 2017 bull run that could target $93,000.

Exchange Reserves Hit 7-Year Low as Holders Accumulate

According to CryptoQuant analyst BorisVest, Bitcoin exchange reserves have plummeted to just 2.43 million BTC – marking a dramatic 28.5% decline from the 3.40 million BTC held on exchanges during the 2021 bull market peak. This significant reduction in available supply suggests strong accumulation behavior from long-term holders.

“The massive exodus of Bitcoin from exchanges represents the longest sustained period of accumulation we’ve seen in seven years,” notes BorisVest. “With supply continuously moving to cold storage, we’re seeing classic signs of supply shock formation.”

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Stablecoin Supply Ratio Suggests Strong Buying Power

The analysis highlights Bitcoin’s Stablecoin Supply Ratio (SSR) currently sitting at 14.3 – well below the 2021 peak of 34. This indicates substantial dry powder remains on the sidelines, ready to enter the market. This metric gains additional significance as recent projections suggest the stablecoin market could reach $2T by 2028.

USDT Dominance Shows Risk-On Shift

Adding to the bullish narrative, declining USDT dominance suggests investors are rotating out of stablecoins and into risk assets like Bitcoin. This shift in market positioning typically precedes significant upward price movements.

Technical Indicators Align with On-Chain Strength

The weekly RSI has broken its downtrend, while exchange net flows signal continued accumulation. These technical indicators, combined with strong on-chain metrics, paint a compelling picture for Bitcoin’s medium-term outlook.

FAQ Section

What does declining exchange reserves mean for Bitcoin?

Declining exchange reserves typically indicate that investors are moving Bitcoin to long-term storage, reducing available supply for trading and potentially creating upward price pressure.

How does the Stablecoin Supply Ratio affect Bitcoin’s price?

A lower SSR suggests there is significant stablecoin buying power relative to Bitcoin’s market cap, indicating potential for price appreciation if this capital enters the market.

What’s the significance of the current $85,550 price level?

This price level represents a critical juncture where on-chain metrics suggest undervaluation, despite being near all-time highs.

April 16, 2025
Bitcoin Surges 3% as Trump Tariff Fears Ease, ETH Hits $2,090
Bitcoin Surges 3% as Trump Tariff Fears Ease, ETH Hits $2,090

Bitcoin and the broader crypto market rallied Monday as reports emerged that President Trump’s planned April 2 tariffs may be less severe than initially feared, easing concerns about potential economic headwinds.

The leading cryptocurrency gained over 3% in the past 24 hours to reach $87,300, while Ethereum surged nearly 4% to $2,090 as the market responded positively to the softening trade rhetoric.

Market Rally Driven by Multiple Catalysts

The upward momentum comes as the Federal Reserve maintained its forecast for two interest rate cuts in 2025 while downplaying inflation risks from the upcoming tariffs. According to Markus Thielen, founder of 10x Research, “Bitcoin is attempting to form a bottom, supported by Trump’s recent shift toward ‘flexibility’ on the reciprocal tariffs.”

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Ethereum Shows Strength as Exchange Supply Drops

Ethereum’s impressive performance coincides with exchange reserves hitting their lowest levels since November 2015, suggesting strong holder conviction and reduced selling pressure. This technical indicator often precedes sustained price rallies.

Broader Market Gains

The positive sentiment extended across the crypto market:
- Mantle Network’s MNT token: +6%
- Trump-linked WLFI: Major accumulation
- TRUMP token: +9% after presidential endorsement
- AI and meme coins: Widespread gains exceeding 9%
Institutional Developments

The market rally comes alongside significant institutional moves:
- DWF Labs announces $250M fund for established crypto projects
- Coinbase reportedly in talks to acquire Deribit
- dYdX launches protocol fee buyback program
Looking Ahead

Key events to watch this week:
- U.S. PCE data release (Friday)
- SEC nominee Paul Atkins’ Senate hearing (March 27)
- Trump tariff implementation (April 2)
FAQs

How will Trump’s tariffs affect crypto markets?

The moderated stance on tariffs reduces economic uncertainty, potentially supporting risk assets like cryptocurrencies.

What’s driving Ethereum’s price increase?

Declining exchange reserves and broader market optimism are key factors behind ETH’s rally to $2,090.

When will the new tariffs take effect?

The Trump administration’s reciprocal tariffs are scheduled to begin April 2, 2025.
March 24, 2025
Ethereum Exchange Reserves Hit Record Low: 18.3M ETH Signal Bullish Reversal
The Ethereum market is showing strong signs of accumulation as exchange reserves hit a historic low of 18.3 million ETH, potentially setting the stage for a significant price reversal. This development comes as Ethereum whales continue their aggressive accumulation near the $2,000 support level, suggesting growing confidence in ETH’s long-term prospects.

Key Takeaways: Ethereum’s Exchange Reserve Dynamics
- Exchange reserves drop to all-time low of 18.3M ETH
- Whales accumulated 120,000 ETH in past 72 hours
- Current price hovering around $1,990
- Potential supply shock brewing as tokens leave exchanges
Understanding the Exchange Reserve Metric

The Exchange Reserve metric is a crucial indicator that tracks the total amount of ETH held on centralized exchanges. When this metric decreases, it typically signals that investors are moving their assets to private wallets for long-term holding, often interpreted as a bullish signal.

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Whale Activity Analysis

On-chain data from Santiment reveals significant whale accumulation:
- Addresses holding 1M-10M ETH bought 120,000 ETH in 72 hours
- Total value of accumulated ETH exceeds $240 million
- Whale buying coincides with price testing critical $2,000 support
Supply Shock Potential

The continuous decline in exchange reserves could trigger a supply shock, potentially catalyzing a significant price movement. Historical data shows that similar supply contractions often precede major price rallies.

Technical Outlook

Current market indicators suggest:
- Price consolidating around $1,990
- 24-hour change: +0.6%
- Key resistance levels: $2,000, $2,200, $2,500
- Support zones: $1,950, $1,850
FAQ Section

What does decreasing exchange reserve mean for ETH price?

Decreasing exchange reserves typically indicate reduced selling pressure and increased hodling behavior, which can lead to price appreciation due to supply constraints.

How significant is the current exchange reserve low?

The current level of 18.3M ETH marks a historic low, suggesting unprecedented levels of accumulation and long-term holding.

What could trigger a price reversal?

A combination of reduced supply on exchanges, increased whale accumulation, and positive market sentiment could catalyze a significant price reversal.

Conclusion

The record low exchange reserves, combined with substantial whale accumulation, paint a potentially bullish picture for Ethereum’s price trajectory. Investors should monitor these metrics closely while maintaining appropriate risk management strategies.
March 23, 2025