28,000 BTC Return to Exchanges, Reversing Supply Squeeze
Bitcoin exchange balances rose about 28,000 BTC, reversing roughly 84% of a six-week decline to about 1.332 million BTC by Aug. 16, Santiment reported on Aug. 17.
Exchange wallets received about 28,000 BTC, reversing roughly 84% of a six-week decline and lifting visible exchange balances to about 1.332 million BTC by Aug. 16, Santiment Intelligence reported.
Santiment’s Supply on Exchanges metric showed balances fell from about 1.337 million BTC on June 12 to a low near 1.304 million on July 28, a drop of roughly 33,000 BTC, before climbing back to roughly 1.332 million by Aug. 16.
U.S. spot bitcoin ETFs posted large inflows in early August. Net new flows totaled about $853.54 million in the first full week of the month, with BlackRock’s IBIT accounting for roughly $693.5 million during a five-session inflow streak that ended Aug. 10. Fund flows turned mixed after that streak, including a $61.16 million outflow on Aug. 12 concentrated at Fidelity and BlackRock.
ETF creations and exchange balances track different parts of the market. The SEC’s in-kind approval allows authorized participants to deliver bitcoin directly to funds in exchange for shares, so ETF creation does not always start with a visible market purchase. Authorized participants can source coins from over-the-counter desks, existing holders or other off-exchange channels. Net ETF flow figures record creations and redemptions for funds, not the specific trading venue or wallet used to obtain the coins.
Centralized exchange balances measure coins analytics firms attribute to trading platforms and act as a proxy for visible, readily tradable supply. A refill of exchange wallets can increase apparent liquidity without identifying who deposited the coins or whether they plan to sell.
Santiment posted on Aug. 17: “Balances bottomed on Jul 28 and have climbed to ~1.332M by Aug 16, about 28,000 BTC back on, roughly 84% of the drain undone.” The firm added: “The squeeze took six weeks to build. It unwound in under three.”
Earlier in the year exchange-held bitcoin had been trending lower. By March 15, the percentage of bitcoin on centralized exchanges hit its lowest level since November 2017.
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