Bitcoin On Exchanges Drop By 44%, Could This Fuel More BTC Rally?

The amount of bitcoin (BTC) being held on exchanges has been on a steady decline since the bear market began in 2022, but the rate at which investors were pulling their cryptocurrencies off exchanges has accelerated in the last couple of months. This has resulted in one of the sharpest drops in the percent of BTC supply left on centralized exchanges. Bitco In a new report by on-chain data aggregator Santiment, the bitcoin held on exchanges has witnessed one of the sharpest declines in history. In January 2022, the BTC held on exchanges accounted for around 11.85% of the total supply, but now, a year later, it has dropped to just 6.65% of the supply left on exchanges. Related Reading: XRP Tops List Of Gainers As Whale Interest Spikes This is a result of the increasing distrust of centralized exchanges following the collapse of FTX, one of the largest crypto exchanges at the time. Self-custody gained more prominence when the exchange filed for bankruptcy, prompting more supply than normal to flow out of exchanges. Over time, some exchanges have been hit harder than others when it comes to withdrawals. A lot of this depends on the amount of distrust circulating around different exchanges, with some like Kraken seeing 59% of total BTC held on the exchange flowing out in a one-year period. Coinbase and Bitfinex emerged as some of the hardest-hit exchanges with outflows of 33% and 32%, respectively. Coinbase’s outflows came amid insolvency rumors which have since been debunked by the exchange. Other exchanges include KuCoin seeing 32% of BTC holdings flow out, as well as Binance which is currently holding 25% less BTC than it did a year ago. Bitstamp was the lowest among the large exchanges, holding about 23% less BTC than it did in early 2022. BTC on centalized exchanges falls to 6.65% of supply | Source: Santiment Will This Push Up the BTC Price? With so much bitcoin leaving centralized exchanges, it points to one phenomenon and that is the fact that investors are accumulating their coins. Furthermore, with more investors choosing to self-custody their BTC, it leaves much less supply active on exchanges that are ready to be sold. Related Reading: Liquidations Cross $200 Million Following Bitcoin’s Rise Above $19,000 This has worked out to reduce the selling pressure on the digital asset over the last couple of months. It is also evident in the strength of the current rally as BTC has been able to hold its position right above $21,000. The less bitcoin on centralized exchanges, the lower the available selling supply, allowing for demand to catch up and even overtake supply. BTC rally slows down | Source: BTCUSD on TradingView.com As demand rises following less available BTC on centralized exchanges, BTC’s price will continue to rise along with it. This could see the digital asset testing the $22,000 resistance level before the week runs out. BTC is currently trading at $21,231. The cryptocurrency’s price is up over 21% in the last week, successfully pushing its market cap above $400 billion once more. Follow Best Owie on Twitter for market insights, updates, and the occasional funny tweet… Featured image from Yahoo Finance, chart from TradingView.com

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The Bitcoin Network Is As Healthy As Ever

Entities transacting on Bitcoin, network value and the number of addresses with non-zero balances all continue to grow, pointing toward greater adoption.

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Exchange Inflows Spike As LFG Moves Bitcoin Reserves

The Luna Foundation Guard was forced to send a majority of its holdings to exchanges as it tried to hold the dollar peg for its Terra stablecoin.

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Bitcoin Supply On Exchanges Has Dropped To A 6-Year Low, What This Means For Price

Bitcoin broke over the $46,000 level twice in the past 24 hours for the first time since the approval of spot Bitcoin ETFs by the SEC, signaling a bullish return into most cryptocurrencies spearheaded by BTC. In particular, Bitcoin investors seem to be gearing up for action as the next Bitcoin halving approaches with an interesting time of withdrawal from exchanges. Serious money has been on the move from exchanges in the past 30 days, as shown by on-chain data. As a result, the Bitcoin balance across various exchanges has seen a drastic drop to the lowest level in six years. Percentage Of Bitcoin Supply On Exchanges Drops To Lowest Level Since 2017 A large portion of Bitcoin holders have been holding onto their coins for the long haul. According to IntoTheBlock data, about 69% of Bitcoin holders have been holding their coins for longer than one year. Related Reading: Chainlink Breeds New Whales As $49.9 Million Accumulation Spree Cause Prices To Surge Data from the on-chain analytics platform Santiment also showed that the supply of Bitcoin on exchanges recently dropped to 5.3% of the total circulating supply for the first time since December 2017, indicating 94.7% of the supply is currently in private custody. This metric is particularly interesting, considering BTC’s total circulating supply has grown by 2.84 million since December 2017. As shown in Santiments chart, the supply on exchanges has been on a free fall since January 10, around when the first spot Bitcoin ETFs went live in the US. This isn’t surprising, as the sentiment around Bitcoin turned fully bullish during this period despite a prolonged price struggle. #Bitcoin‘s price dominance has continued to grow over #altcoins, as its market value surged as high as $45.5K today. Traders remain skeptical toward the asset for a 3rd straight week. This is the lowest ratio of $BTC on exchanges since December, 2017. https://t.co/XC3UK258lM pic.twitter.com/4MwvXE28RC Santiment (@santimentfeed) February 8, 2024 In a similar manner, whale transaction tracker Whale Alerts has disclosed large bouts of BTC exiting crypto exchanges to private wallets in the past month. Notably, Bitcoin’s dominance over altcoins has gained ground, with the institutional demand for Bitcoin post-ETF approval also surging. 1,150 #BTC (51,452,847 USD) transferred from #Coinbase to unknown wallethttps://t.co/bQl4vCkifM Whale Alert (@whale_alert) February 8, 2024 This mass BTC exodus from crypto exchanges signals that long-term holders feel more comfortable keeping their coins in self-custody rather than on exchanges.  The total Bitcoin withdrawals from exchanges in the past seven days were to the tune of $8.64 billion, outpacing a $8.42 billion inflow by $220 million. Wallets holding more than 1,000 BTC have also accumulated 1.03% of the total circulating supply in the past month. Related Reading: Ethereum Staking Reaches Historic Milestone As ETH Price Barrels Past $2,400 Withdrawals from exchanges are generally a good phenomenon for crypto assets, as they reduce the amount of cryptocurrencies readily available for sale. Fewer BTC available means less selling pressure and the opportunity for the value to go up based on supply and demand.  At the time of writing, Bitcoin is trading at $46,250, up by 4% in the past 24 hours and 7.15% in the past seven days. The cryptocurrency is currently aiming for the $50,000 mark, which it can reach very soon if the accumulation strategy continues. BTC price crosses $47,000 | Source: BTCUSD on Tradingview.com Featured image from Forbes, chart from Tradingview.com

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Token Sale Ahead: Celsius to Convert Customer ‘Altcoins’ to BTC and ETH

Amid the regulatory crackdown in the United States, the bankrupt crypto lender Celsius has announced that all of its customers’ “altcoins” will be converted to bitcoin (BTC) and ethereum (ETH). Over $215 million worth of coins such as CEL, ADA, LINK, LTC, and others will be sold beginning on July 1, 2023. Celsius Plans to [...]

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Binance CEO CZ responds as data points to billions in exchange outflows

Data analytics platforms have reported billions of dollars in outflows from Binance over the last week, but this can be misinterpreted, argues Changpeng Zhao.

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Over $28 Million In SHIB Withdrawn From Exchanges Ahead Of Shibarium Launch

The Shibarium Layer-2 upgrade is launching any day now, and it looks like some big SHIB players are making moves ahead of the launch. According to on-chain data, over $28 million in SHIB tokens have been withdrawn from major crypto exchanges in the just concluded month of July.  Massive Withdrawals Signal Investor Interest in Shibarium According to data shared on Twitter by crypto analyst Ali Martinez, backed up by on-chain chart data from IntoTheBlock, around 3.30 trillion SHIB were withdrawn from known crypto exchanges in July, the highest SHIB withdrawal rate in recent months. The chart’s data also shows that the circulating supply of the token within exchanges fell from 86.69 trillion to around 83 trillion by the end of the month. Related Reading: USDT Issuer Tether Reports A 30% Decline In Profit July 19 saw the most significant withdrawal from exchanges, with more than two trillion tokens going into unknown wallets. According to on-chain data from @WhaleAlert, an Ethereum whale transferred 2.4 trillion SHIB tokens worth $18.7 million from Binance.US into an unknown wallet. With the price of the token up by 10% since then, the whale’s SHIB holding is now valued at more than $20 million.  These massive SHIB withdrawals can be traced to the announcement of the Layer 2 blockchain, Shibarium, which is expected to help minimize gas fees and increase the transaction speeds of the blockchain. Token price falls to $0.00000821 | Source: SHIBUSD on Tradingview.com While there’s still no official launch date for Shibarium yet, the high rate of withdrawals likely signals that SHIB investors are reducing the selling pressure and want to hold their tokens in private wallets in hopes of what the Shibarium launch might bring.  Withdrawals From Exchanges Reduces Selling Pressure On SHIB When SHIB is withdrawn from exchanges, it can’t be readily sold. This reduces the available supply of SHIB for sale, putting upward pressure on the price. When whales transfer such high amounts into self-custody, it frequently results in massive price changes and a rise in interest from other investors. This flurry of withdrawal into self-custody demonstrates the strength of the SHIB community and their faith in SHIB’s future. Related Reading: Is It A Good Idea To Buy Curve Now? Here’s What This Founder Thinks The meme-inspired token has gained quite a lot of community and has led the entire crypto industry in gains for the past two weeks. Shibarium’s launch is anticipated and SHIB holders want to make sure they capitalize on everything the new scaling solution will offer.  At the time of writing, SHIB’s market cap is nearing $5 billion after it recently retook the 14th position by market cap. The meme coin is trading at $0.000008314 and is up by 7.55% in the past seven days. Featured image from iStock, chart from Tradingview.com

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FTX EU Launches New Website for Withdrawals as Subsidiary Starts Returning Funds to Customers

FTX’s European subsidiary, FTX Europe, has launched a new website, ftxeurope.eu, for users to withdraw funds from the now-defunct cryptocurrency platform. Withdrawal requests must be submitted through the new website and will be “subject to customary know-your-customer and anti-money-laundering checks.” FTX’s European Arm Opens Withdrawals to Customers According to a press release published on Friday, [...]

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