Bitcoin Balance on Exchanges Drops to 3-Month Low, Indicates Rising Investor Confidence

In recent news, the amount of Bitcoin balance held on cryptocurrency exchanges has experienced a significant decline, reaching a three-month low. 

Data by a prominent blockchain analytics firm, Glassnode, reveals that the balance of Bitcoin on exchanges has dropped to 2,281,978.198 BTC, slightly below the previous low observed on June 17. 

This development indicates a growing trend among investors choosing to withdraw their Bitcoin from exchanges, showcasing a rising confidence level in holding the cryptocurrency outside these platforms.

Bitcoin Reserves on Exchanges Plummet Amid Regulatory Pressure

Recently, there have been regulatory challenges for Binance and Coinbase, the two biggest cryptocurrency exchanges in the world. The firms are facing lawsuits from the U.S. Securities and Exchange Commission (SEC).

This has increased the attention on the cryptocurrency market, which is not strongly regulated. The lawsuits have caused worry among crypto investors, leading to the movement of Bitcoin holdings away from exchanges. 

This shift may involve transferring the Bitcoin into private wallets to keep them safe and secure. Notably, the daily on-chain exchange flow witnessed a net outflow of $56.3 million worth of Bitcoin. 

This suggests that more Bitcoin is being withdrawn from exchanges than deposited, reflecting a preference among investors to hold their assets in personal wallets during this uncertain time.

Along with the reduction in Bitcoin held on exchanges, the amount of Bitcoin that was last used or moved between one and two years ago has experienced a sharp increase recently. This amount has reached its highest level in the past month, totaling 2,582,043.952 BTC. 

Moreover, the percentage of Bitcoin supply last used or moved over two years ago has reached its highest level ever, standing at 40.083%. This means a significant portion of the total Bitcoin supply has remained inactive for a long time. 

It suggests that more people are holding onto Bitcoin balance rather than actively trading it, often associated with positive sentiment and optimism about its long-term prospects.

This particular metric is frequently utilized to assess how investors behave and gauge their sentiment towards the cryptocurrency.

Bitcoin ‘Wholecoiners’ Surpass 1 Million Milestone

Another intriguing development within the Bitcoin ecosystem is the surge in Wholecoiners, the addresses holding at least one whole Bitcoin (BTC).

According to a tweet from the co-founder of Glassnode, Rafael Schultze-Kraft, the number of addresses holding BTC has hit a milestone of one million.

This trend indicates that more people or organizations are collecting Bitcoin, even though its price is relatively high. Owning a whole Bitcoin is significant because the total supply of Bitcoin is limited to 21 million coins.

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