Bitcoin exchange reserves just erased 84% of a six-week drain in under three weeks -- 28,000 BTC flowed back onto exchanges since July 28.
The data: Santiment shows BTC exchange reserves peaked at 1.337M BTC on June 12, fell to a low of 1.304M BTC on July 28 (a 33,000 BTC withdrawal), then rebounded to ~1.332M BTC by August 16 -- recovering 28,000 BTC in under half the time it took to drain. Reserves now sit just ~5,200 BTC below the June peak, the highest level since June 15.
The catch: more BTC sitting on exchanges means more liquid, readily-sellable supply -- the opposite of what the "ETF demand is draining tradable BTC" narrative implied a few weeks ago. Santiment itself flags that this rebound doesn't necessarily mean active selling; it could reflect OTC settlement, arbitrage flows, or ETF create/redeem mechanics moving coins around rather than holders dumping.
Our read: this cuts both ways at once -- it undercuts the supply-squeeze bull case, but it doesn't confirm a bear case either. Falsifiable watch-point: does this reserve level keep climbing back toward June's peak, or was this a short-lived reversal?
Does rising exchange reserves change your read on BTC's supply story, or is this just noise in the flow?
Not financial advice. DYOR.
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