Bitcoin Holders Accumulate Amid Low Exchange Reserves and Spike in Inactive BTC Supply
Summary:
Data suggests that Bitcoin (BTC) owners are piling up the cryptocurrency, signaled by a drop in exchange holdings and a surge in inactive BTC. Glassnode reported that inactive BTC is at an all-time high since July 2023, with 69% of addresses holding BTC for over a year. Outflows from exchanges have been decreasing since July 2021, with only around 2 million BTC anticipated to stay on exchanges. Despite high holdings, significant outflows have been seen from top exchanges like Binance and Coinbase Pro, while OKX has reported a significant inflow.
Bitcoin (BTC) holders appear to be snapping up the digital asset amid declining exchange reserves and a spike in the supply of "inactive" BTC. Data from Glassnode shows that the supply of idle BTC, which hasn't shifted from a particular address for durations of 1, 3, and 5 years, reached record levels in July 2023. Coinmarketcap's Bitcoin tracking tools, which monitor how long wallet addresses have held onto BTC, support these findings. The data reveals that about 69% of addresses, equating to over 36.8 million, have held BTC for over a year.
CryptoQuant provides additional evidence, showing the falling trend of Bitcoin flows out of exchanges, starting in July 2021. Exchange reserves are estimated at slightly above 2 million BTC. Coinglass further dissects this by illustrating how much BTC is held by prominent centralized exchanges. Binance leads the pack with roughly 543,281 BTC, despite a significant withdrawal of 21,645 BTC in the last month.
Meanwhile, Coinbase Pro holds a balance of 435,530 BTC, placing it second, though it too has seen a reduction, with 3,612 BTC leaving the platform in the last 30 days. OKX is the outlier among the top ten, experiencing a hefty inflow of 4,630 BTC in the last month.
As Bitcoin's fourth mining reward halving — a widely anticipated event — approaches in 2024, market pundits predict a significant increase in the cryptocurrency's value.
Published At
9/20/2023 9:54:48 AM
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