The percentage of Bitcoin’s circulating supply being held on cryptocurrency exchanges has dropped below the 10% mark for the first time since the $BTC price hit a $3,200 low back in December 2018, at the bottom of the so-called Crypto Winter.
According to on-chain analytics firm Santiment, last month’s volatility in cryptocurrency markets “caused an inflex of $BTC moving to exchanges for panic sells.” The low supply being held on exchanges, the firm says, is a “sign of hodler confidence.”
Bitcoin’s supply on cryptocurrency exchanges is a closely tracked metric, as it’s used to gauge the supply of BTC that is currently available to be sold on the market. A smaller amount of BTC on exchanges means that if demand rises enough, a supply shock that leads to upward price movement is a possibility.
As reported, HODLers of the flagship cryptocurrency with long-term time horizons are doubling down on their exposure to the cryptocurrency, as the percentage of BTC owned by addresses holding for one year or longer has expanded, while short-term traders are “fading away.”
Trading Bitcoin over the last few months could, according to research, have become easier if investors followed BTC whales, which have all but dictated the price of the flagship cryptocurrency, with significant whale activity being seen near local tops and bottoms.
As CryptoGlobe reported Bitcoin’s “investor tool” metric, which is designed as a tool for long-term investors to find periods where prices may be approaching cyclical tops or bottoms, has started flashing a buy signal for the first time since the COVID-related crash of March 2020.
Last month, JPMorgan said that cryptocurrencies are now the bank’s preferred alternative asset, as a major sell-off in the cryptocurrency space after the collapse of the Terra ecosystem hurt cryptos more than other alternative investments including private equity and private debt.
To JPMorgan’s analysts, the fair price for BTC is $38,000, Investors have moved away from riskier assets including cryptoassets this year over rising inflation and interest rates and Russia’s invasion of Ukraine.
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