On-chain data suggests that traders and investors are increasing interest in holding BTC for the long term. The number of BTC on exchanges that are ready for sale is in a long-term decline. Even today, it has reached a minimum of several years.
The number of BTC on exchanges is falling!
Currently only about 2.3 million BTC coins are held on exchanges, which represents less than 15%. Investors keep the rest in their wallets. Metrics show that since the beginning of this month, there has been a high outflow of capital from exchanges totaling almost 100,000 coins. We can follow the declining trend on the exchanges as early as 2019, when the big bull market started and BTC broke the long-term historical maximum – $ 20,000. The decline of coins on the exchanges has always indicated the beginning of growth, which may be a fairly accurate signal that BTC has already found its bottom and will continue to grow.
How can BTC react to this?
In the past, a larger outflow of money from exchanges was recorded during 2019, when the price of BTC rose sharply and the price went from about $ 6,000 to $ 60,000. Another big outflow occurred during August 2021, when BTC also recorded an autumn increase of more than 100%. The Bitcoin network has also seen one of the largest outflows in recent days.
Collector mistakenly sold the NFT for $ 1 million for 1 cent
