Crypto Analytics Platform Santiment Finds Bitcoin Supply on Exchanges at Six-Year Low
Crypto analytics platform Santiment has discovered that the supply of Bitcoin (BTC) on exchanges has dropped to its lowest level in approximately six years. Here are the key points:
– Only 5.8% of the total BTC supply is currently on trading platforms, a level last seen on December 17, 2017.
– This low level indicates a lack of confidence in centralized platforms, as BTC holders prefer cold storage options and self-custodial methods.
– The trend of self-custodial methods increased following the collapse of cryptocurrency exchange FTX in November, which led to increased BTC outflows from major exchanges.
– The amount of BTC on exchanges dipped to 7% between Q4 2022 and Q1 2023, and has now reached 5.8%, driven by fear, uncertainty, and doubt.
– Despite the decline in BTC supply on exchanges, significant whale transactions continue, with an average of 57,400 weekly transactions surpassing $100,000 in value.
– Recent on-chain analysis also revealed that whales and sharks holding 10 to 10,000 BTC accumulated over 11,600 BTC worth approximately $308 million between August 17 and August 24.
– The accumulation spree was sparked by BlackRock’s application for a spot Bitcoin exchange-traded fund in June, which prompted other traditional finance giants to follow suit.
In conclusion, the decreasing BTC supply on exchanges suggests a lack of trust in centralized platforms, while significant whale activity continues to drive the market.
By
By
