The supply of bitcoin (BTC) on centralized crypto exchanges has fallen to its lowest level in six years, indicating a decline in selling intent. According to the latest edition of the Bitfinex Alpha report, exchange-held BTC has reached its 45th consecutive month of diminishing supply. The development came when BTC hit a significant resistance level at ,000. Bitcoin Supply on Exchanges Continue to Decline Long-term investors or large holders usually move their assets to crypto exchanges with the intention of selling and withdraw their balances from such platforms to store them in cold wallets for extended periods. The decline in BTC supply on exchange is considered a bullish sign because it shows an increased desire by investors to continue holding their assets and a
Topics:
Mandy Williams considers the following as important: AA News, Bitcoin (BTC) Price, Bitcoin Bull Run
This could be interesting, too:
Wayne Jones writes Argentina’s Mining Sector Pioneers Lithium Tokenization by Tapping Cardano
Wayne Jones writes Chinese Auto Dealer Dives Into Bitcoin Mining With 6M Investment
Wayne Jones writes Nigeria Arrests 792 in Landmark Crypto-Romance Scam Raid
CryptoVizArt writes Bitcoin Price Analysis: Is BTC In Danger of Falling to ,000 Soon?
The supply of bitcoin (BTC) on centralized crypto exchanges has fallen to its lowest level in six years, indicating a decline in selling intent.
According to the latest edition of the Bitfinex Alpha report, exchange-held BTC has reached its 45th consecutive month of diminishing supply. The development came when BTC hit a significant resistance level at $45,000.
Bitcoin Supply on Exchanges Continue to Decline
Long-term investors or large holders usually move their assets to crypto exchanges with the intention of selling and withdraw their balances from such platforms to store them in cold wallets for extended periods.
The decline in BTC supply on exchange is considered a bullish sign because it shows an increased desire by investors to continue holding their assets and a decrease in intentions to sell them. The reduction also indicates a potential shift toward decentralized and self-custody solutions.
As the reduction in exchange-held BTC has persisted since 2017, it has significantly impacted the asset’s volatility, liquidity, and overall market dynamics. The implication extends to BTC deposit transactions to exchanges, which have plunged to multi-year lows. Current deposits to exchanges have declined to a level last seen in July 2020, suggesting reduced selling pressure.
BTC Hits $45K Resistance
While BTC deposit transactions decline alongside the asset’s supply on exchanges, the network’s Spent Output Profit Ratio shows that a large portion of holders are currently in profit, as the metric has remained above one for 44 consecutive days.
Bitcoin’s latest surge saw the asset surpass $44,000, representing a 170% increase from the start of the year. However, the leading crypto asset hit a resistance level at $45,000 and came tumbling down. Data from CoinMarketCap shows BTC was trading around $41,700 at the time of writing.
Bitfinex said the resistance level is a crucial cost basis for medium-term investors who bought BTC between two to three years ago, and a surge past $45,000 in December would mark the asset’s largest recovery within a year in percentage terms.
“If BTC consistently stays above current support levels of $40,000, it could enhance overall market positivity. Conversely, struggling to break past this level might trigger selling pressures. A key factor to monitor will be the movement of coins from this age group to exchanges, which could signal their intent to sell or strengthen their positions,” Bitfinex analysts stated.