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TL;DR
- Bitcoin supply on exchanges has fallen to a five-year low of approximately 2.29 million BTC.
- The percentage of BTC supply held on exchanges has decreased from 5.99% to 5.73% since September 1, signaling reduced selling pressure.
- Whales have been accumulating BTC, controlling over 66% of the circulating supply, while the top 1% of Bitcoin addresses hold nearly 19.3 million coins.
A Bullish Indicator?
The supply of Bitcoin (BTC) on cryptocurrency exchanges has recently dropped to record lows. The following analysis examines whether this trend could signal a future price increase.
According to blockchain data platform Glassnode, the BTC balance on crypto exchanges has retraced to a five-year low of approximately 2.29 million BTC. By comparison, this figure stood well above the 3.2 million mark at the start of 2020.
Behavior analytics platform Santiment also highlighted this development, estimating that BTC supply on exchanges slipped from nearly 6% at the beginning of September to 5.73% currently. Additionally, it revealed that certain whales executed transactions worth hundreds of millions of dollars shortly before the leading digital asset spiked above $28,000 on October 2.
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Exchange outflows are generally viewed as bullish for the asset’s price, as they reduce selling pressure and indicate investors’ long-term conviction.
Whales Continue Accumulation
As previously reported, large holders (“whales”) have been purchasing BTC at an accelerated pace over the last few months and currently control more than 66% of the circulating supply of the primary digital asset.
It is also worth noting that the top 1% of Bitcoin addresses hold nearly 19.3 million coins (out of approximately 19.5 million BTC currently in circulation).
We have released a video detailing the six BTC billionaires. Those interested in learning more can view the clip below:
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