On-chain data shows Bitcoin investors haven’t moved large amounts to exchanges in response to the Russia-Ukraine war (at least for now).
Bitcoin Exchange Reserve Doesn’t Spike Up Following The War Breakout Between Russia And Ukraine
As pointed out by an analyst in a CryptoQuant post, the BTC reserve hasn’t moved significantly after the news of the Russia-Ukraine war.
The “all exchanges reserve” is an indicator that measures the total amount of Bitcoin sitting in wallets of all exchanges.
If this metric is valued higher, that means there are net inflows to exchanges due to investors depositing their coins. This trend can be bearish on the cryptocurrency price as crypto holders typically transfer their coins onto exchanges to sell them.
However, falling reserves can indicate that there are more outflows on the exchanges. This trend is bullish because holders often withdraw their coins from the exchanges for hodling.
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Here’s a chart showing the Bitcoin reserve trend over the last few days.
The indicator's value hasn’t changed in the last 24 hours. Source: CryptoQuant| Source: CryptoQuant
As you can see in the above graph, the Bitcoin exchange reserve hasn’t increased that much since the start of the Russia-Ukraine war.
The price of the coins has however seen a steep fall. The majority of sellers are those who had already kept their coins on the exchanges and planned to sell them in the event that war breaks out.
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After big bearish announcements like this, large inflows can be common. However, there haven’t been any such inflows yet. This would imply that those storing their coins in personal wallets haven’t panic transferred their Bitcoin to exchanges for selling, yet.
According to the quant, things could change over the next hour, but at the moment, BTC hodlers who are not on the exchanges appear to be doing well.
BTC Prices
At the time of writing, Bitcoin’s price floats around $35.1k, down 18% in the last seven days. The crypto’s value has dropped 12% over the last 30 days.
Below is a chart showing the change in BTC’s price over the past five days.
Source: BTCUSD on TradingView| Source: BTCUSD on TradingView
The price of Bitcoin plunged to $34.4k after the conflict between Russia and Ukraine. It then rebounded a bit and is now at its current level.
Unsplash.com featured image, Charts from TradingView.com and CryptoQuant.com charts