Percentage of Bitcoin Supply On Exchanges Sinks To Multi-Year Low
As per the latest weekly report from , the percentage of the BTC supply on exchanges has now declined to a multi-year low of around 13.27%.The “percentage of supply on exchanges” is an indicator that measures the percent of the total circulating Bitcoin supply that’s currently stored in exchange wallets.
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Now, here is a chart that shows the trend in the percentage of BTC supply on exchanges over the past year:Looks like the value of the indicator has been on a downtrend for a while now | Source:As you can see in the above graph, the percentage of the Bitcoin supply on exchanges has now hit a multi-year low of 13.27%. It seems like the indicator has continued on a downtrend despite the struggling price of the crypto recently. Since the all-time high in November, the metric has decreased by about 0.28% as 42.9k BTC has exited exchanges during the period.
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This trend has been different from what happened following the crash in May of last year. There, the exchange supply rose up and sustained at high values for a while until the price started moving back up again.
The current reducing exchange supply shows investors may be in a state of accumulation, which could be bullish for the price of Bitcoin in the long term.BTC Price
At the time of writing, Bitcoin’s price floats around $38.5k, up 6% in the last seven days. Over the past month, the crypto has lost 17% in value.
The below chart shows the trend in the price of BTC over the last five days.BTC's price seems to have held steady above the $38k price mark in the last few days | Source:
Featured image from Unspash.com, charts from TradingView.com, Glassnode.com