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.
When the value of this metric rises, it means exchanges are receiving net inflows as investors deposit their coins. Such a trend is usually bearish for the price of the crypto as holders generally transfer their coins to exchanges for selling them.
On the other hand, a falling reserve implies exchanges are observing more outflows at the moment. This kind of trend can be bullish as holders usually withdraw their coins for hodling purposes.
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Now, here is a chart that shows the trend in the Bitcoin exchange reserve over the past few days:
Looks like the value of the indicator hasn’t seen any significant change over the last day | 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, though, has still observed a very sharp plunge down. This means that the majority of the sellers have to be those who were already keeping their coins on exchanges, planning in advance to sell them in case war broke out.
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Large inflows are common following big bearish news like this one. 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.
The quant in the post believes that things may very well change in the coming hours, but for now, BTC hodlers outside the exchanges seem to be holding strong.
At the time of writing, Bitcoin’s price floats around $35.1k, down 18% in the last seven days. Over the past thirty days, the crypto has lost 12% in value.
The below chart shows the trend in the price of BTC over the last five days.
BTC’s price seems to have crashed down over the past day | Source: BTCUSD on TradingView
In the plunge that followed the war breakout between Russia and Ukraine, the price of Bitcoin touched as low as $34.4k before quickly jumping back a little and recovering to the current levels.
Featured image from Unsplash.com, charts from TradingView.com, CryptoQuant.com