BTC Supply on Exchanges Is Falling
Large Bitcoin hodlers have accelerated the withdrawal of the cryptocurrency to cold storage.
BTC supply on cryptocurrency exchanges has been decreasing since mid-August. During the last month, the process has speeded up by half, with Bitcoin withdrawal rates of about 100,000 BTC per month, according to Glassnode’s analysts.
The analysts noted that most of the cryptocurrency is withdrawn to wallets with little transaction history, typically used for long-term storage of funds. The company’s weekly report showed that 76% of addresses on the Bitcoin network remain in profit.
BTC’s decline on exchanges has been ongoing since May 2019, which analysts at Santiment have already pointed out. Investors’ asset accumulation is a positive factor because it minimizes the likelihood of a major BTC sell-off.