Longest streak of Bitcoin withdrawals surpassing deposits signals market shift

Tracking Bitcoin’s movement across exchanges is crucial to understanding market dynamics. The balance of Bitcoin on exchanges serves as a reliable barometer of market sentiment, providing invaluable insight into investor behavior and potential market shifts. Alongside tracking Bitcoin’s balance, it’s equally important to track Bitcoin exchange deposits and withdrawals. The volume of Bitcoin being deposited […]

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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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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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On-chain data shows Bitcoin supply is tightening

After a brief struggle to regain footing, Bitcoin finally broke through the $52,000 barrier on Feb. 14. While $50,000 was a critical psychological benchmark, trading above $52,000 indicates rising market confidence in Bitcoin and can mean the end of the bear market. During periods of price volatility, especially significant upward movements, it’s important to analyze […]

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