Bitcoin Exchange Supply Drops to the Lowest Level in 37 Months

Bitcoin exchange supply is shrinking. Amid global adoption and holding trends, BTC owners have moved their digital assets from trading platforms to crypto wallets substantially in the last three years.

Santiment’s recent data highlights a sharp surge in Bitcoin outflows from leading digital exchanges. According to the numbers, BTC trading platforms now hold just 10.8% of the circulating supply of the crypto asset, compared to more than 14% in February 2021.

With that, the
 
 exchange 
supply has touched its lowest level since December 2018. “With another series of dramatic drops, Bitcoin’s supply on exchanges is now down to just 10.87%, the lowest percentage seen since December 2018. Generally, this continued trend of coins moving off of exchanges limits the risk of major sell-offs,” Santiment outlined.

Historically, Bitcoin witnessed a similar trend after every major correction. During the market corrections in 2018 and 2020, holders moved the digital currency from trading platforms to wallets. After the recent market plunge in December 2021 and January 2022, BTC owners have followed a similar pattern.

Positive Sentiment

With a spike of more than 20% since 24 January 2022, Bitcoin saw a shift in sentiment during the last 2 weeks. The world’s largest cryptocurrency led the latest digital asset weekly fund flows. BTC-related investment products attracted $71 million worth of inflows during the recent week.

After a major change in market sentiment, BTC’s market cap is stabilizing near $800 billion. “Bitcoin’s crowd sentiment has remained positive this week, and this is likely contributing to the decline BTC &
 
 altcoins 
have seen to end the week. We will be looking for a bit of crowd FUD as a signal that bounces will happen heading into next week,” Santiment added.

The exchange supply ratio of BTC has dropped by nearly 3% in the last 12 months.

Bitcoin exchange supply is shrinking. Amid global adoption and holding trends, BTC owners have moved their digital assets from trading platforms to crypto wallets substantially in the last three years.

Santiment’s recent data highlights a sharp surge in Bitcoin outflows from leading digital exchanges. According to the numbers, BTC trading platforms now hold just 10.8% of the circulating supply of the crypto asset, compared to more than 14% in February 2021.

With that, the
 
 exchange 
supply has touched its lowest level since December 2018. “With another series of dramatic drops, Bitcoin’s supply on exchanges is now down to just 10.87%, the lowest percentage seen since December 2018. Generally, this continued trend of coins moving off of exchanges limits the risk of major sell-offs,” Santiment outlined.

Historically, Bitcoin witnessed a similar trend after every major correction. During the market corrections in 2018 and 2020, holders moved the digital currency from trading platforms to wallets. After the recent market plunge in December 2021 and January 2022, BTC owners have followed a similar pattern.

Positive Sentiment

With a spike of more than 20% since 24 January 2022, Bitcoin saw a shift in sentiment during the last 2 weeks. The world’s largest cryptocurrency led the latest digital asset weekly fund flows. BTC-related investment products attracted $71 million worth of inflows during the recent week.

After a major change in market sentiment, BTC’s market cap is stabilizing near $800 billion. “Bitcoin’s crowd sentiment has remained positive this week, and this is likely contributing to the decline BTC &
 
 altcoins 
have seen to end the week. We will be looking for a bit of crowd FUD as a signal that bounces will happen heading into next week,” Santiment added.

The exchange supply ratio of BTC has dropped by nearly 3% in the last 12 months.

Source: https://www.financemagnates.com/cryptocurrency/news/bitcoin-exchange-supply-drops-to-the-lowest-level-in-37-months/