Bullish Sign: Bitcoin Supply on Exchanges Hits 5-Year Low
The supply of Bitcoin (BTC) on cryptocurrency exchanges has reached a record low, signaling a potential future price increase. According to blockchain data platform Glassnode, the BTC balance on crypto marketplaces has dropped to around 2.29 million BTC, the lowest level in five years. This is a significant decrease from the beginning of 2020 when the figure was above 3.2 million.
Santiment, a behavior analytics platform, also observed a decline in BTC supply on exchanges, from nearly 6% at the start of September to 5.73% currently. They also noted that certain whales made large transactions just before Bitcoin surged above $28,000 on October 2.
Whales Accumulating BTC
Sharks and whales have been accumulating BTC at an increased rate over the past few months and now control more than 66% of the circulating supply. Additionally, the top 1% of Bitcoin addresses own nearly 19.3 million coins out of the approximately 19.5 million produced ones.
Hot Take: Positive Indicators for Bitcoin Price
The decreasing supply of Bitcoin on exchanges, coupled with whale accumulation and a concentration of wealth among the top addresses, suggests positive indicators for the future price of Bitcoin. As fewer coins are available for trading and influential investors continue to accumulate, it could lead to increased scarcity and demand for BTC, potentially driving its price higher.
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