The trend of Bitcoin’s supply moving away from exchanges and into self-custody continues unabated, as per the market intelligence platform, Santiment. This shift is attributed to the ongoing erosion of trust in exchange platforms. This is the lowest level for the top cryptocurrency by market cap since December 17, 2017.
The decrease in supply on exchanges is generally seen as a positive sign, indicating a decreased risk of major sell-offs. This trend suggests that investors are choosing to hold onto their assets for potential future profits instead of selling. The market sentiment around Bitcoin remains largely bullish, despite recent price corrections.
On-chain data indicates a significant shift of Bitcoins being transferred from exchanges to private wallets, a trend that could potentially signal a bullish market in the future. The supply of Bitcoin on exchanges has reportedly reached a five-year low.
Santiment Data Shows Decreasing Bitcoin Supply
In a recent update shared on the social media platform X, Santiment posted a chart that depicted the long-term growth trends of two key metrics. The data revealed that the total supply of Bitcoin on exchanges has dwindled to 5.38%, a low not seen since December 2017. Concurrently, the top 10 largest USDT exchange wallets have amassed a record $15.23 billion in Tether, marking the highest level since June 2022.
💸 #Bitcoin's supply on exchanges has continued moving into self custody, as exchange reputation continues to diminish. Meanwhile, the 10 largest #Tether exchange wallets hold $15.23B, pushing exchange buying power to its highest level in 17 months. 💪 https://t.co/AtjD9ve3YO pic.twitter.com/XJ0uuTiAZx
— Santiment (@santimentfeed) November 29, 2023
Interestingly, the chart shared indicates that the values of both metrics intersected between May and June 2023, coinciding with Bitcoin’s rise above the $30,000 mark for the first time since its dip below this level in June 2022. Since this intersection, both metrics have exhibited relatively stable trends in their respective directions, with occasional minor pullbacks.
Bitcoin (BTC) has demonstrated a strong recovery, surging past the $38,000 threshold, reflecting the persistent bullish sentiment among traders. This resilience is evident despite the ongoing absence of a spot BTC Exchange-Traded Fund (ETF) approval and recent regulatory scrutiny faced by cryptocurrency exchanges such as Binance and Kraken.
Data from TradingView indicates a change in price trends, with Bitcoin hitting a low of $36,715 on Monday, only to bounce back in a bullish reversal. This rally propelled the premier cryptocurrency to a high of $38,315 before it met resistance.
