The amount of bitcoins held on cryptocurrency exchanges has been steadily dropping over the last few weeks, to the point that over the last 30 days an estimated 46,900 BTC, worth over $2.3 billion, is believed to have left trading platforms.
The bitcoin balance on cryptocurrency trading platforms is often used by analysts to gain insights into what BTC investors are thinking. A large amount of bitcoin leaving trading platforms shows investors are looking to self-custody their funds, presumably because they plan to hold onto them for some time.
On the other hand, a large amount of bitcoin entering trading platforms shows investors are either trying to sell their holdings, or trying to exchange them for other cryptoassets. Data from ViewBase shows that over the last 30 days, 46,925 BTC moved off of exchanges, with over 51,000 leaving Coinbase.
As Decrypt reports, data from on-chain analytics platform Glassnode points to a similar trend, showing over 52,900 BTC moving off of cryptocurrency exchanges from February 23 to March 2. Glassnode’s data shows 2.3 million BTC are still left on trading platforms, the lowest figure seen since July 2018, when bitcoin was trading at about $7,400.
The difference in the data may be associated with the cryptocurrency exchange wallets both platforms are tracking. Either way, bitcoin held on exchanges is moving off trading platforms which suggests decreased selling pressure for the flagship cryptocurrency.
According to CryptoCompare data, the price of bitcoin has been struggling to stay above $50,000 over the last few days. After dropping from an all-time high above $58,000, the cryptocurrency’s price dropped to a $43,000 low.
Bitcoin has since recovered to at one pointed surpass $50,000, but the recovery was quickly followed by a downward movement that saw it move back down to $49,200 at press time. Some analysts, however, predict the bull run isn’t over and see BTC hit $100,000 this year.
Featured image via Pixabay.