Bitcoin holders are rapidly removing their coins from exchanges, according to a new report by CryptoQuant, a cryptocurrency analysis company.
The report shows that the amount of BTC held on exchanges has decreased by 32% since March 2020, reaching levels last seen in early 2018.
According to CryptoQuant, there are currently around 2.1 million Bitcoins on exchanges, up from 3.1 million in March 2020. This means that only 11% of the circulating bitcoin supply is available for trading, compared to 17% in March 2020.
The report suggests that this trend indicates an increased preference for traders to hold rather than sell or trade BTC.
The report also states that some of the decline in exchange balances may be due to the rise of decentralized exchanges (DEXs) and funds that are not included in the data, such as the Grayscale Bitcoin Trust.
However, the report states that these factors do not account for the majority of this trend and there is a clear trend that BTC holders are withdrawing their money from exchanges.
*Not investment advice.