Thread by @JanWues

With the #Bitcoin supply on exchanges going down again after an increase during May-July it seems like a good time to dust of my @BitcoinMagazine article from May 11 where I dive deeper into the $BTC supply dynamics on exchanges and /1
bitcoinmagazine.com/markets/is-the…

the rather exceptional decline in $BTC reserves held on exchanges during this cycle. While it was already exceptional as of the time of the writing of the article, the continuation of the decline after a period of inflows underlines the difference of this cycle to the previous /2

ones. Whether we look at @glassnode data or @cryptoquant_com, $BTC supply on exchanges has already hit new lows this year or is close to this years low (driven by the difference in reported exchanges). But most importantly, the pattern in both is similar. /3

If this trend will continue in the coming weeks is something yet to be seen. But if so, this might set some exciting supply and demand dynamics on exchanges in motion and would undoubtedly be positive. /4

Note: There is still around 2.4 million #Bitcoin sitting on exchanges. So one might argue that it is too early to speak about a supply shortage. Overall this is hard to quantify, but I personally think it at least to some extent is positively related to Bitcoins price. /5

Even if declining reserves are just signifying an increasing demand for bitcoin and potentially more people putting their Bitcoin into self-custody which would also be a great development./6