• Bitcoin supply on exchanges has hit its lowest level since 2017, when the crypto market saw its all-time high.
• This trend of Bitcoin leaving exchanges has been consistent since March 2020, when the crypto market bottomed ahead of a pandemic bull run.
• The decrease in Bitcoin supply is likely due to concerns over security and transparency, heightened after the FTX collapse.
Bitcoin Supply Falls to Lowest Level Since 2017
The balance of bitcoins on exchanges is now down to 2.27 million – that is the lowest mark since March 2018. This figure is even lower when compared to the overall supply; there is currently 11.8% of the Bitcoin supply on exchanges, which is the lowest mark since December 2017, when Bitcoin reached an all-time high price point.
Supply Decrease Since March 2020
The pattern of Bitcoin fleeing exchanges has been consistently falling since March 2020, when crypto bottomed ahead of an explosive pandemic bull run. Originally, people pulled their coins from exchanges in order to participate in a vibrant crypto ecosystem with high volumes and activity and much scope for yield farming and DeFi projects. However, today interest levels have fallen but this pattern continues – albeit for different reasons – with many fearing for their digital asset’s security and transparency after FTX collapsed earlier this year.
What Does This Mean?
The fall in bitcoins on exchange wallets could mean several things: it could be a sign that people are becoming more aware about keeping their coins safe by withdrawing them onto private wallets; or it could be an indication that financial institutions are buying up large amounts of bitcoin; or it may simply mean that people are holding onto their coins in anticipation of another bull run later this year. Ultimately only time will tell what lies ahead for bitcoin’s future price movements!
Not Your Keys Not Your Coins
The old saying „Not your keys not your coins“ rings true even more than ever before after FTX’s collapse earlier this year – reminding us once again just how important it is to keep our digital assets secure by withdrawing them off exchange wallets whenever possible!
Overall, bitcoins leaving exchanges shows us a clear indication that investors are becoming increasingly aware about protecting their investments by transferring them onto private wallets as well as being careful about where they store their digital assets. With news from institutional players such as Tesla investing into bitcoin also boosting confidence in the market, we can only hope for further positive developments in 2021!