Bitcoin (BTC) reserves on derivatives exchanges have fallen to levels not seen before the May price drop.
Data from CryptoQuant on-chain analytics service confirmed that, As of Tuesday, derivatives reserves amounted to 1.256 million BTC, the lowest since May 11.
Institutions repeat the fourth quarter of 2020
In a context in which institutional interest returns to cryptocurrency instruments such as the Grayscale Bitcoin Trust (GBTC), Figures show that major players have been adding to their BTC holdings throughout the slide.
The analyst William Clemente III commented this week what “The big capitals have been buying.”
Exchange balances prove it, since on derivatives platforms, the trend observed for the last time at the end of 2020 is repeated.
Even during the most intense phase of BTC’s bull run this year, derivative balances grew inversely: a declining balance characterized only by the beginning of the rise to USD 64,500.
“Since May 19, entities with 10,000-100,000 BTC have added +269,450 to their holdings ($ 12,100 million)”, added Clemente III, highlighting more data.
“These entities have between $ 450 million and $ 4.5 billion of their capital allocated to Bitcoin.”
Accumulation in action
Entities have not been put off by any bearish narrativeincluding the defeat of China’s miners since May, or the ongoing saga over the US infrastructure bill.
As Cointelegraph previously reported, Retail exchange balances have already been going down for some time.
As of Tuesday, the total figure for exchanges balances stood at 2.44 million BTC, also a three-month low.