The supply of bitcoin on cryptocurrency exchanges is rapidly shrinking.
Supply has shrunk by 3%, and the supply of Bitcoin on exchanges is the lowest in 37 months.
Bitcoin exchanges now own only 10.8% of the Bitcoin supply.
😮 With another series of dramatic drops, #Bitcoin‘s supply on exchanges is now down to just 10.87%, the lowest percentage seen since December, 2018. Generally, this continued trend of coins moving off of exchanges limits the risk of major sell-offs. 👍 pic.twitter.com/vKwkinUuCl
— Santiment (@santimentfeed) February 12, 2022
The shrinking supply of bitcoin on exchanges may be due to the broader global adoption of cryptocurrencies.
Many bitcoin owners have moved their cryptocurrency from exchanges to their crypto wallets in bulk in the past few years.
Bitcoin exchanges own only 10.8% of the total supply:
According to Santiment data, there has been a sharp rise in bitcoin outflows from most of the leading trading platforms around the world.
The latest data shows that exchanges now hold only 10.8% of the circulating supply of cryptocurrency, down from 14% in February 2021.
The latest supply figures are the lowest since December 2018.
Santiment said in a statement:
With yet another series of dramatic declines, the supply of bitcoin in trading platforms has now fallen to just 10.87%, the lowest seen since December 2018.
In general, this constant trend of currencies exiting the trading platforms limits the risk of a major selloff.
This phenomenon is not new, in the past a similar trend was seen after every market correction.
For example, in 2018 and again in 2020, bitcoin owners moved their coins from exchanges to private wallets.
The same phenomenon was also seen after the market plunge in December 2021 and January 2022.
Move Bitcoin price:
Despite the positive indicator mentioned above, Bitcoin continues to decline at least in the last 24 hours.
Since January 24, 2022, the price of bitcoin has seen a 20% rise, and bitcoin has seen a shift in sentiment in the past two weeks.
The number one cryptocurrency is driving the latest weekly cryptocurrency fund flows.
Bitcoin has generated inflows of $71 million in the last week.
After the change in market sentiment, Bitcoin’s market cap has stabilized near $800 billion.
Santiment also reported that Bitcoin audience sentiment has remained positive this week, which is likely contributing to the drop in Bitcoin and altcoins over the weekend.
A total of 2.3 million bitcoins have not moved in over 10 years…Details here
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