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This Bitcoin Metric Plummets to a 5-Year Low But Is It Bullish?

Summary:
TL;DR Bitcoin supply on exchanges is at a 5-year low of around 2.29 million BTC. The percentage of BTC supply on exchanges has decreased from 5.99% to 5.73% since September 1st, indicating decreased selling pressure. Whales have been accumulating BTC, controlling over 66% of the circulating supply, and the top 1% of Bitcoin addresses own nearly 19.3 million coins. Bullish Sign? The supply of Bitcoin (BTC) on cryptocurrency exchanges has dropped to record levels recently. In the following lines, we will observe whether this could be considered a sign for a future price increase. According to the blockchain data platform Glassnode, BTC balance on crypto marketplaces has retraced to a 5-year-low of approximately 2.29M BTC. In comparison, the figure was well above the 3.2M

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TL;DR

  • Bitcoin supply on exchanges is at a 5-year low of around 2.29 million BTC.
  • The percentage of BTC supply on exchanges has decreased from 5.99% to 5.73% since September 1st, indicating decreased selling pressure.
  • Whales have been accumulating BTC, controlling over 66% of the circulating supply, and the top 1% of Bitcoin addresses own nearly 19.3 million coins.

Bullish Sign?

The supply of Bitcoin (BTC) on cryptocurrency exchanges has dropped to record levels recently. In the following lines, we will observe whether this could be considered a sign for a future price increase.

According to the blockchain data platform Glassnode, BTC balance on crypto marketplaces has retraced to a 5-year-low of approximately 2.29M BTC. In comparison, the figure was well above the 3.2M mark at the start of 2020.

The behavior analytics platform Santiment also noted the development, estimating that BTC supply on exchanges has slipped from almost 6% at the beginning of September to 5.73% as of now. In addition, it revealed that certain whales had executed transactions worth hundreds of millions shortly before the leading digital asset spiked above $28,000 on October 2.

Exchange outflows are typically perceived as bullish for the asset’s price since they reduce selling pressure and indicate investors’ long-term convictions.

Whales Have Been on an Accumulating Spree

As CryptoPotato recently reported, sharks and whales have been purchasing BTC at an increased temp over the last couple of months and currently control more than 66% of the circulating supply of the primary digital asset.

It is also worth mentioning that the top 1% of Bitcoin addresses own almost 19.3 million coins (as of the moment, there are approximately 19.5 million produced ones). 

We released a video providing information on the six BTC billionaires. Those willing to learn more can feel free to click on the clip below:

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