Bitcoin Volume on Crypto Exchanges Hits Lowest Level in 5 Years: Report
The number of Bitcoins held in exchange addresses has reached its lowest point since January 2018, according to CryptoQuant.
Reportedly, investors currently hold around 2.03 million BTC on trading platforms. Experts attribute the recent surge in Bitcoin’s value to the decrease in its supply on exchanges.
They also speculate that once the short-term phase of profit-taking ends, traders will start accumulating BTC again.
Since March 2020, there has been a consistent decline in the balance of BTC on cryptocurrency exchanges.
While there have been occasional spikes in trading volume, the overall trend shows a significant outflow of digital currency from exchange wallets.
It is estimated that 69% of the bitcoins are held by HODLers – investors who have not moved their coins for over a year.
This has been a contributing factor in the decline of BTC on exchanges. As reported by Santiment, the decrease in BTC exchange balance has coincided with a record-low trading volume on the spot market since March 2019.
Last week, there was a surge in volatility resulting in Bitcoin reaching its highest level since mid-August.
