Crypto NewsBitcoinGiant Whales Are Pulling Bitcoin (BTC) From Exchanges! What Does It Mean...

Giant Whales Are Pulling Bitcoin (BTC) From Exchanges! What Does It Mean and How Should It Be Interpreted?

According to Onchain data, the amount of Bitcoin (BTC) in central cryptocurrency exchanges has dropped to record low levels.

Follow Bitcoin Sistemi Google News Button

According to the latest report published by cryptocurrency analysis company CryptoQuant, exchanges' Bitcoin reserves have fallen to their lowest levels since the beginning of 2021, signaling a significant change in the cryptocurrency market dynamics.

More than 90,700 bitcoins were withdrawn from major cryptocurrency exchanges last month. According to analysts, this trend reduces Bitcoin's liquid supply and indicates that investors are moving their coins to cold wallets as part of a long-term holding strategy.

This movement of Bitcoin from exchanges to cold wallets is a trend that has been going on for many years. Factors such as the rise in BTC price and the approval of spot Bitcoin ETFs and the anticipation surrounding the BTC halving event are likely driving this trend.

According to the report, in July 2021, Bitcoin exchange reserves were around 2.8 million. This marks a decrease of approximately 900,000 coins since CryptoQuant began recording this metric.

Related News  OKX Announces New Altcoin Listing - First of Its Kind

However, data from Glassnode points to a significant transfer of bitcoin from long-term wallets to short-term wallets. “Following the historical squeeze in supply, the gap between long- and short-term wallet supply has begun to close,” said this week's Glassnode report.

As prices rise and unrealized profits held by investors increase, this entices long-term wallets to part with their holdings. The report added that short-term wallet supply increased by approximately 1.12 million BTC, absorbing long-term wallet selling pressure.

*This is not investment advice.

Buradaki Yorumlardan Bildirim Al

Inline Feedbacks
View all comments

Popular Posts of the Week