Our liquid tradable BTC proxy below 20% for the first time since April 2021The liquid tradable BTC proxy introduced by us in April has declined to a 15-month low of 19.8% amid the massive redemptions experienced in recent months.
As mentioned briefly above, we published an article in April exploring and providing context to why traders should be cautious when interpreting on-chain narratives covering bitcoin.While exchange balances have seen a steady and sustained decline, from 17% of the circulating supply to 12.5% in the last two years, our liquid tradable BTC proxy has been far more elevated, reaching highs of 21.7% on January 26th. However, since, and in particular, in the last two months, the liquid tradable BTC proxy has seen a sharp decline, falling below 20% for the first time since April 2021. This decline is caused by large redemptions in WBTC and the Canadian BTC ETFs, in addition to the declining exchange balances.
Source: Glassnode, Skew, Dune, MicroStrategy, Tesla, Square, Meitu, Aker, Bytetree, VanEck, Proshares, Hashdex, StatusInvest