Bitcoin Reserves Rebound by 28,000 BTC in Just Three Weeks
A recent trend in Bitcoin reserves on exchange platforms has reversed course, according to data from Santiment Intelligence. From June 12 to July 28, exchange reserves dropped from 1.337 million BTC to 1.304 million BTC, removing 33,000 coins from the market.
However, a spectacular rebound brought balances back up to 1.332 million BTC between July 28 and August 16, thanks to the rapid deposit of 28,000 tokens. This return of liquidity cancels out 84% of the supply drain accumulated over a month and a half.
The mechanism behind this increase in reserves is largely attributed to over-the-counter (OTC) desks sourcing supplies off-book via ETFs. Institutional demand on these funds does not necessarily require an immediate purchase on spot exchange order books, which explains why deposits on centralized exchange platforms can increase independently of the net volume absorbed by listed funds.
This rapid swelling of exchange reserves does not contradict the institutional accumulation dynamic via financial vehicles but sheds light on its real mechanism. The recent volatility of subscriptions to US ETFs illustrates this heterogeneity of institutional behaviors, with a sequence of five consecutive days of positive flows totaling $853.54 million of net inflows in the first full week of August.