Bitcoin remains an intriguing cryptocurrency as it never fails to yield surprising metrics. As the balance on exchanges hits a two-year low, a unique situation becomes apparent. Additionally, the realized price hit a new all-time high, triggering some minor excitement among long-term enthusiasts. 

Bitcoin Balance On Exchanges Drop

It has become apparent that there is a decrease in the Bitcoin balance on exchanges for some time. More specifically, there is a clear outflow of BTC from centralized trading platforms in the past year. It is a healthy trend for the world’s leading cryptocurrency and one that will eventually make a price impact. For now, its influence remains subdued, for the most part.

The real reason behind the decreasing Bitcoin balance on exchanges remains unclear. Traders and holders keep withdrawing vast amounts of BTC from these centralized platforms. Why that is the case, or where the money may be headed to, is still a mystery. One thing is obvious: the funds are not flowing to other centralized trading platforms at this time. 


BlocDesk Bitcoin Balance on Exchanges
Source: Glassnode

Following this two-year low of under 2.4 million Bitcoin across exchanges, one has to wonder what the future will hold. The decrease in Bitcoin balance on exchanges is slowing down lately, although a net outflow of 340 Bitcoin per day is still more than acceptable. The proverbial “supply shortage” many enthusiasts hope to see will not materialize just yet. 

The Bitcoin balance on exchanges has decreased by nearly 1 million BTC in the past year, or close to 30%. A significant number, as there are still BTC being mined on the network every 10 minutes. Although the issuance rate has been cut in half recently, miners will still rely on centralized platforms to liquidate these rewards. As this supply keeps getting bought up, it may be a matter of time until the subsequent significant Bitcoin price increase.

Realized BTC Price Hits A New All-time High

While the Bitcoin balance on exchanges metric shows a decrease in available supply, the realized price keeps rising. That is normal, as the realized price values UTXOs at their last time of being broadcast to the network. Coins held in a wallet for a long time are valued lower than anything that moved over the network recently. It is all the more impressive to see the realized price surpass $17,600. 

BlocDesk BTC Realized Price
Source: Glasssnode

Less than a year ago, Bitcoin had a realized price of roughly $5,000. The world’s leading cryptocurrency had only risen to $20,000 once and dipped to a much lower value between 2018 and 2020. All of the network activity during that time should have brought the realized price down a level. However, thanks to this year’s bull run, the realized price can keep climbing to higher levels. 

To most people, the realized Bitcoin price may not be too important. However, the Bitcoin balance on exchanges is a metric that everyone can understand without issues. Fewer BTC is available for purchase every day, yet the price remains somewhat subdued for weeks on end. Despite the lack of significant bullish or bearish momentum, Q2 2021 may prove rather surprising to onlookers and Bitcoin speculators alike.