Bitcoin Supply on Exchanges Hits Lowest in 3 Years After Series of BTC Drops

As per data provided by on-chain data vendor Santiment, investors have been withdrawing their BTC from crypto exchanges en masse, leaving only 10.87 percent of the circulating supply there.

As the leading crypto is getting moved off trading platforms, risks of any big sell-off becomes lower, Santiment says. It has also named the reason why Bitcoin dropped a $1,000 on Friday, taking a decline along with traditional markets.

Bitcoin exchange supply sees massive decline

Santiment has tweeted that after Bitcoin price has seen several consecutive drops, the amount of flagship cryptocurrency held on exchange wallets has gone down sharply. According to the data from the analytics company, it has reached the 10.87 level – the lowest mark, which was last observed on crypto trading venues in December 2018 in the middle of the crypto winter.

The company’s analysts believe that these massive withdrawals are likely to prevent any major sell-off now.

? 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

Here’s what pushed BTC 4.5% down on Friday, Vitalik Buterin steps in

In an earlier tweet, Santiment stated that the reason Bitcoin went 4.5 percent down on Friday, dropping from $43,863 to 41,928 was caused by the talks of Russian invasion into Ukraine – talks and expectations of that have been increasing recently.

Experts in the US and other Western countries believe that Russia is highly likely to start a war against Ukraine to prevent it from joining the NATO and therefore has concentrated large amounts of war units near the border with Ukraine in several strategic locations.

Santiment has stressed that the volatility has touched not only Bitcoin but equities markets as well and increased volatility will continue as long as spikes on this topic will go on.

? Both #cryptocurrencies and #equities markets were likely impacted Friday by the increased talks of #war. The tensions between #Russia & #Ukraine have put the world on notice, and spikes on this topic will continue to coincide with increased volatility. https://t.co/5OmVV7xRbz pic.twitter.com/D8qYWM6rdm

— Santiment (@santimentfeed) February 12, 2022

Ethereum cofounder Vitalik Buterin of a Russian-Canadian origin took to Twitter on Friday and posted a message to Kremlin in Russian, urging Russian political leaders not to attack Ukraine but find a peaceful solution.