Bitcoin (BTC) reserves on derivatives exchanges have dropped to levels last seen before the May price crash.

Data from on-chain analytics service CryptoQuant confirmed that as of Tuesday, derivatives reserves totaled 1.256 million BTC — the to the lowest degree since May 11.

Institutions repeat Q4 2022

Against a backdrop of institutional interest returning to cryptocurrency instruments such as the Grayscale Bitcoin Trust (GBTC), figures show that major players take in fact been adding to their BTC holdings throughout the downturn.

"Big money has been buying," annotator William Clemente III commented this calendar week.

Exchange balances prove the indicate, with derivatives platforms seeing a repeat of the trend last witnessed at the terminate of 2022.

Even during the most intense stage of the BTC bull run this year, derivatives balances conversely grew — a decreasing balance characterized only the very beginning of the run to $64,500.

Bitcoin derivatives exchange reserves chart. Source: CryptoQuant

"Since May 19th, entities with 10K-100K BTC have added +269,450 to their holdings ($12.1B)," Clemente III added, highlighting further information.

"These entities have between $450M–$four.5B of their capital allocated to Bitcoin."
10,000–100,000 BTC entity growth chart. Source: William Clemente Iii/Twitter

Accumulation in action

Institutions have not been put off by any overriding narrative from inside or beyond cryptocurrency, including China's miner rout since May, or the ongoing saga over the United States' infrastructure beak.

Related: One Bitcoin now buys 0.6 kilograms of gold as 10-year returns plough negative

As Cointelegraph previously reported, retail commutation balances have already been heading lower for some time.

Every bit of Tuesday, the total exchange rest figure stood at 2.44 million BTC, besides a three-month depression.

Bitcoin all exchanges reserves chart. Source: CryptoQuant