Bitcoin Supply on Exchanges Drops to 18-Month Low in May as Market Fears Lifts
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On March 12, 2020, a day after the historic “Black Thursday,” the total number of BTC on centralized cryptocurrency exchanges hovered around 3,000,000. Over that period, the number of BTC tokens residual on exchanges dropped by 15.86%, from 3,000,000 to 2,524,000 BTC, between March 12 (the day after Black Thursday) and November 15, 2020.
Recently, the number of BTC on exchanges has been lower, and in May, the market recorded two notable lows. The first instance occurred on May 2, 2022, after CryptoQuant reported that there were only 2,481,000 BTC on exchanges. The 2,481,000 BTC exchange supply was 1.7% lower than the number of BTC supply recorded on November 15, 2022. However, this supply decline was short-lived following the Terra meltdown, which triggered one of the worst crypto market crashes in history, causing a sharp spike in BTC deposits on exchanges.
That said, this metric has declined again to notable lows as the Terra-induced panic fades. At press time, there are approximately 2,503,000 Bitcoin tokens on centralized exchanges, with Coinbase holding the highest BTC tokens accounting for 34% of the total exchange-based supply.
Key Bitcoin Levels to Watch — May 22
Bitcoin remained in a sideways bias over the weekend between the lower-$30K area and the $29K support. The benchmark cryptocurrency remained solidly above the $29K support, further galvanizing assertions that BTC has seen its bottom in the recent crash.
Having remained steady over the weekend, we could see positive moves for the flagship cryptocurrency and the broader market in the coming week. The target remains a sustained entry above the $31K pivot level, followed by a return to the top of the 100-day EMA, which determines the near-term trend of the crypto asset.
Meanwhile, my resistance levels are at $30,000, $31,000, and $32,000, and my key support levels are at $29,000, $28,000, and $27,000.
Total Market Capitalization: $1.28 trillion
Bitcoin Market Capitalization: $569.8 billion
Bitcoin Dominance: 44.5%
Market Rank: #1
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