The amount of BTC on exchanges continues to decline. This means that the coins that are held outside of such platforms grow in volume.
The amount of Bitcoin on exchanges is at its lowest level in 6 years: good or bad sign?
The amount of Bitcoin (BTC) on exchanges continues to fall. Currently, only 5.8% of these cryptocurrencies are on exchanges, which is its lowest in almost 6 years; a level as low as this has not been seen since on December 17, 2017according to Santiment.
By this measure, there are still “reasonable amounts” of whale transactions (investors with more than 1,000 BTC). At the moment they move 57,400 BTC on average per week, which corresponds to more than US$1.5 billion.
Another data in tune also explains that more and more investors are choosing to keep their bitcoins off exchanges. According to analyst James V. Straten in the last week the largest daily outflow of bitcoin from exchanges in all of 2023.
Of all the exchanges, Bybit registered the maximum amount of withdrawals of the coin in its history, coming from the whales for 12,500 BTC, equivalent to more than $320 million.
The market analyst known as Crypto Rover commented that the lower amount of bitcoin on exchanges “it means that the selling pressure will probably decrease”. This, he specified, is a bullish sign for the market since, given an increase in demand over supply, the price will rise.
In turn, Crypto Rover said that “the trend is moving towards self-custody of bitcoin.”
Source: Ambito
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