Bitcoin (BTC) underwent a bullish surge in the past month, witnessing a growth of over 30% since October 15. This presented a lucrative opportunity for investors, traders, and Bitcoin miners to capitalize on profits through coin sales. Concurrently, the reserves of BTC on centralized exchanges saw a notable increase, amounting to around $1.2 billion in the leading cryptocurrency.


Bitcoin: Balance on exchanges (total) [BTC] – All Exchanges. Sources: Glassnode and @ali_charts

Notably, data from Glassnode, as shared by Ali Martinez on X, revealed a rise of 34,315 BTC in exchange reserves from October 20 to November 14. The reserves reached a low of approximately 2.32 million BTC, the lowest point in the chart, before rebounding to over 2.35 million BTC at its peak. With Bitcoin's current price hovering around $36,000, this surge in reserves signifies a potential market sell-off worth $1.23 billion.

A noteworthy observation is that the surge in Bitcoin's price preceded the decline in exchange reserves, indicating an elevated demand for BTC, possibly withdrawn to cryptocurrency wallets. On October 15, Bitcoin was valued at $27,174 per coin.


Bitcoin (BTC) daily price chart. Source: TradingView

Despite the increased demand contributing to a bullish trend, exchange reserves grew in tandem with the rising price, suggesting a willingness among cryptocurrency traders to sell their digital assets. The price of Bitcoin reached as high as $37,978 during this reserve increase, providing ample liquidity for sellers at higher prices. On November 14, when reserves peaked, BTC experienced a drop to as low as $35,000, consolidating liquidity against an expanding supply.

Additionally, it's important to note that Bitcoin mining contributes approximately 900 BTC to the circulating supply daily. Over a 30-day period, this results in an additional 27,000 BTC available for sale by mining entities, pools, and individual operators, aiming to cover the costs associated with this resource-intensive activity.