Bitcoin Exchange (BTC) reserves are back at record lows as 2022 will whet a new appetite among shoppers.

Data from the chain analysis company CryptoQuant shows that the reserves on 21 exchanges were 2.308 million BTC as of 4 January.

The stock markets return to a general bearish trend in the BTC balance sheet
According to CryptoQuant, at the end of December, at the end of December, there was at least 2.303 million BTC left in the stock market balance, after which there was a short-term jump to 2.334 million.

Bitcoin currency reserve chart. Source: CryptoQuant
But with institutional players returning to the market after the holiday period, the downward trend resumed. This is in line with expectations for high-volume buyers in the first quarter.

Currency balance data is the subject of some discussions this week. Different statistical sources use a different number of exchanges and wallets, as a result of which the data are almost incomparable.

For example, there are 21 CryptoQuant exchanges competing with 18 Glassnode-controlled exchanges and five CoinMetrics.

Another resource, Cryptorank, estimated the balance at 1.3 million BTC on Christmas Eve.

The trend may also vary depending on the platforms included, with some exchanges experiencing a general decline in balance over the past month, while others have seen growth.

As the Cointelegraph reported, this was the case with Huobi Global, which was required to deregister mainland China users by the end of 2021 in accordance with the regulations.

Big fish to run the show
During a discussion with CryptoQuant last week, analyst David Puell, the creator of the popular Puell Multi indicator, shared his thoughts on the upcoming behavior of market participants.

On this topic: New Year’s Eve, the same ‘extreme fear’ – 5 things to look for in Bitcoin this week

The “comfortable” nature of Bitcoin in 2021 compared to, for example, 2019, keeps retail investors and “FOMO” away.

“I think it’s great in the long run,” he said.

“The market will mostly be owned by institutional players, especially in monthly price fluctuations, with some profits from early users, but a much smaller role than retail operators.”

Source: CoinTelegraph