People are taking their Bitcoin off exchanges and that has been good news historically

As we speak the amount of bitcoin being held on exchanges continues to drop.

The most recent data shows that there is now roughly 2,310,466.600 BTC held on exchanges.

This is a far cry from the 2,650,000+ that was held on exchanges back in February...

(Source: https://twitter.com/glassnodealerts/status/1269440098145316864)

Why does this matter?

Well, if BTC is not sitting on an exchange, it can't be sold, well theoretically it could but it wouldn't impact the exchange prices, at least not direction anyways.

Historically we have seen the reserves dropping on exchanges just like this during accumulation phases, right before large moves up.

Back in early 2019 BTC was trading around $4,000 and as it started to gradually climb upwards towards $14,000 the balance on the exchanges dropped dramatically.

We often see the inverse happen near market tops, where large volumes of BTC are being moved to exchanges.

People move their BTC off of exchanges for any number of reasons, but they usually only move it to an exchange for one reason...

There is one caveat to consider...

Normally this kind of news would be pretty straight forward, cut and dry, easy to interpret.

However, there was news recent of Coinbase possibly selling their analytics arm, Coinbase Analytics to the IRS...

https://www.theblockcrypto.com/post/67551/coinbase-irs-dea-analytics-neutrino

And as you might have guessed that kind of news has caused a large outflow of BTC from Coinbase.

Which means that the most recent outflow numbers may be skewed slightly to this ongoing development.

That news came out on/around June 5th, so anything after that might need an asterisk next to it...

Either way we were seeing a big draw-down in balances well before that news leaked... which means we probably are all setup for a good ol fashioned bitcoin rally.

Stay informed my friends.

-Doc