Bitcoin Accumulation Skyrockets As Exchange Holdings Hit Yearly Lows
Summary:
On-chain data reveals increasing accumulative behavior from Bitcoin (BTC) holders, resulting in exchange holdings reaching the lowest this year and the percentage of inactive BTC supply hitting record highs. Notably, since July 2023, BTC inactivity spanning over one, three, and five years has been at all-time highs. Substantial decrease in Bitcoin outflows from exchanges since July 2021 and significant Bitcoin inflow in OKX exchange are also observed. These trends are shaping lofty predictions for Bitcoin’s future value, especially with the expected fourth mining reward halving in 2024.
Indications from on-chain data reveal that Bitcoin (BTC) owners are progressively buying more BTC, causing a decrease in exchange holdings to the lowest point this year, while the portion of unused BTC supply reaches unmatched heights. Data from Glassnode show that the amount of BTC that hasn't moved from a certain location in over one, three, or five years has reached unprecedented levels since July 2023.
These figures find a parallel in Bitcoin analytics from CoinMarketCap, which observes wallet addresses to determine how long they've held BTC. They've estimated that roughly 69% of the addresses, equating to around 36.8 million, have held onto BTC for more than a year.
A similar trend can be seen in CryptoQuant charts, where Bitcoin outflows from exchanges have seen a consistent drop since July 2021, leaving just over 2 million BTC currently on exchanges.
CoinGlass's Bitcoin on-exchanges tracker further itemises the quantity of BTC in circulation held by top centralized exchanges. Leading this group is Binance, with a balance of 543,281 BTC, although it has experienced significant Bitcoin outflows in the past month, with 21,645 BTC having been removed from Binance.
Following closely in second place is Coinbase Pro, which holds 435,530 BTC and has also seen a decrease in its Bitcoin balance, with 3,612 withdrawn over the past month.
OKX, however, sits as the outlier among the top ten exchanges, with a substantial Bitcoin inflow in the past thirty days – 4,630 BTC has been transferred to the platform.
In light of these findings, market pundits and analysts foresee a promising future for Bitcoin, especially considering the fervently-awaited fourth mining reward halving due to occur in 2024.
Published At
9/20/2023 9:54:18 AM
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