Bitcoin exchange supply is shrinking rapidly. The supply ratio has shrunk by 3%, and Bitcoin exchange supply is the lowest in 37 months. BTC exchanges now hold only 10.8% of the supply. The reason for BTC exchange supply shrinking could be due to wider global adoption of the number one cryptocurrency and holding sentiments of BTC owners. BTC owners have moved their digital assets from trading platforms to crypto wallets in substantial quantities in the last few years.
Bitcoin exchanges hold just 10.8%
? 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. ? https://t.co/So7mmK1tHg pic.twitter.com/vKwkinUuCl
— Santiment (@santimentfeed) February 12, 2022
Data from Santiment reveals that there has been a sharp upsurge in Bitcoin outflows from most of the leading exchanges around the globe. The latest data shows that exchanges now hold just 10.8% of the circulating supply of the crypto asset, compared to more than 14% in February 2021.
The latest supply figures are the lowest since December 2018. Santiment stated. “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.”
This phenomenon is not new, and in the past, a similar trend was seen after every market correction. For example, in 2018 and again in 2020, holders moved BTC from trading platforms to wallets. The same phenomenon was also seen post the market plunge in December 2021 and January 2022.
Bitcoin spike
However, since January 24, 2022, the bitcoin price has seen a spike of 20%, and BTC has been witnessing a shift in sentiments in the last two weeks. The number one cryptocurrency is leading the latest digital asset weekly fund flows. The numero uno crypto asset has raked in $71 million worth of inflows during the recent week.
After the change in market sentiments, BTC’s market cap stabilizes near $800 billion. Santiment further stated that BTC crowd sentiments remained positive this week, which is likely contributing to the decline BTC & altcoins have seen to end the week.
Disclaimer
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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Source: https://coingape.com/bitcoin-exchange-supply-tanks-to-the-lowest-level-in-37-months/