Bitcoin derivatives reserves on exchanges fell to levels that were last seen in the May price crash.
On Tuesday, Data from CryptoQuant, an on-chain analytics service, confirmed that derivatives reserves totalled 1.257 million BTC. This number was last seen on May 11.
Institutions Repeat Q4
Against a backdrop of institutional interest reverting to crypto instruments like the Grayscale Bitcoin Trust, numbers show that major members have been adding to their BTC holdings during the downturn.
This week, analyst William Clemente commented that big money started to buy itself. Exchange balances show and prove this point, with derivatives platforms witnessing a repeat of the trend last seen at the end of 2020.
This year, even during the most severe phase of the BTC run, the derivatives balance increased. However, the decreasing ratio seemed visible only at the very beginning of the $64,600 run.
Accumulation in Action
According to Cointelegraph, retail exchange balances started heading lower sometimes.
On Tuesday, the total exchange balance reached 2.45 million BTC, a three-month low.
According to Mike Novogratz, institutions started to buy more Bitcoin.
Galaxy Digital CEO says that bitcoin bounced back because more investors are buying it. In response to U.S. Senator Elizabeth Warren, He stated that they need to do a better job to educate lawmakers.
On Wednesday, in an interview with CNBC, Mike Novogratz also talked about the chances of bitcoin.
He received a couple of questions on how he sees the future of bitcoin and its price action.
He replied that Crypto returned to its high phase because institutions started to buy more and more. As an example, he talked about the FTX exchange. The exchange recently increased by more than $900 million from at least 60 investors, putting the firm’s valuation at $19 billion.