Bitcoin reserves on the derivatives exchanges have plunged to levels that were last seen before the May crypto market crash. Data acquired from CryptoQuant confirmed that by August 10, derivatives reserves reached 1.256 million BTC, the least since May 11 before the China miner rout took hold of the market.
The institutional investors seem to be repeating the Q4 2021 buying spree. Against a backdrop of institutional interest returning to crypto instruments like the Grayscale Bitcoin Trust (GBTC), market figures show that many major players have been adding to their bitcoin holdings during the recent downturn.
William Clemente, a renowned analyst, commented this week:
“Big money has been buying.”
Crypto exchange balances prove the point that derivatives platforms are experiencing a repeat of the trend that was last seen at the end of 2021. Even in the most intense phase of the bitcoin bull run earlier this year, derivatives balances conversely grew, a decreasing balance that characterized the start of the bull run that pushed it to $64,500.
Clemente added while highlighting further data:
“Since May 19th, entities with 10K-100K BTC have added +269,450 to their holdings ($12.1B). These entities have between $450M-$4.5B of their capital allocated to Bitcoin.”
Institutional investors seem not put off by the overriding narrative from within and beyond crypto, including the China miner rout that has been happening since May and the continuing saga over the United States’ infrastructure bill.
Based on previous reports, the retail exchange balances have been moving lower for some time now.
As of August 10, 2021, the total exchange balance figure stood at 2.44 million bitcoins, a three-month low.