Recently CryptoQuant, an on-chain analytics firm, published insights on Bitcoin’s supply and investor sentiment for May 2023. The firm revealed that the exchange reserves have significantly declined as the investor’s holding sentiment has continued to grow.
The analytics firm added a comparison with the trend from July 2019, as the time “saw a decrease in deposit transactions during a $BTC price increase, indicating that the market was waiting for a bullish momentum before the halving.” The graph below shows the trend since the start.
Simultaneously, according to recent on-chain data from Glassnode, an on-chain analytics firm, Asia is leading the Bitcoin supply at the moment. Notably, data suggests that the continent’s Bitcoin supply is at its highest since 2016.
The metric “Bitcoin supply” is to estimate the year-over-year change in the share of the Bitcoin supply held or traded in Asia. Data suggest that the year-over-year supply in Asia has just breached 9%; this is the highest recorded level since the bear market back in 2016, which got to 10%.
According to the graph below, during bear markets, Asia’s Bitcoin supply continues to increase, as they buy value, and offload Bitcoin during bull runs. The graph below suggests that during bear markets, Asia has consistently increased its Bitcoin supply by buying value with the intent of offloading during bull runs. This current cycle shows that the supply is continuing to increase, as Asian traders continue to buy Bitcoin currently.
Analysts reveal that the specifications of geolocation of Bitcoin supply is performed probabilistically at the entity level. In such cases, the timestamps of all transactions an entity creates are correlated with the working hours of different geographical regions to determine the probabilities for each entity being located in the US, Europe, or Asia.
In recent times, the Bitcoin reserves on exchanges has seen a significant decline hinting at a positive investor sentiment. Notably, The Bitcoin exchange balance fell below 12%, this is the lowest value achieved since this was first achieved at the beginning of the year.
The outflow levels for the asset have continued to maintain their traction in recent times. As Todayq News reported data from CoinShares which revealed that Bitcoin (BTC) experienced outflows of nearly $38 million, accounting for 80% of all outflows in digital asset investment products for a week.
Notably, after a continued highs, the prices of Bitcoin witnessed lows this week, another lucrative factor who intend to accumulate at low levels and sell at higher. As of writing, Bitcoin is trading at $22,32,160.98, about a 3.71% decline over the past 5 days and about a 4.72% decline over the past month.