The supply of Bitcoin on cryptocurrency exchanges fell below 1.2 million this past week, reaching lows not seen since November 2018. This milestone comes even after the flagship cryptocurrency briefly dipped below $30,000, reflecting strengthening confidence among long-term holders.
Santiment, a blockchain analytics company, recently tweeted that the number of Bitcoins available on exchanges has continued to decrease:
👍 #Bitcoin's supply on exchanges continues to move into self custody, and the drop below $30k last week hasn't triggered severe reactions that would indicate #FUD or more upcoming sell-offs. The 1.17M $BTC on exchanges is the least amount since Nov, 2018. https://t.co/UlqAO0W0cH pic.twitter.com/HmmUMm7QIx— Santiment (@santimentfeed) July 26, 2023
In regards to Santiment, the declining supply of Bitcoin on exchanges indicates that investors are moving their holdings into self-custody wallets. This trend shows that the recent price drop has not triggered panic selling or fears of further declines.
The shift towards self-custody wallets enables investors to control their cryptocurrency assets directly rather than relying on exchanges. This provides greater security and reduces risks associated with keeping funds in hot wallets on trading platforms.
Bitcoin (BTC) is currently trading at $29,253.12, reflecting a 0.43% increase in the last 24 hours. The cryptocurrency has a market cap of $1.18 trillion, making it the dominant player in the market with 48.3% market share, followed by Ethereum (ETH) at 19.0%.
In terms of trading volume, Bitcoin has seen approximately $26.36 billion in trades over the past 24 hours, indicating considerable activity and interest in the market. The circulating supply of Bitcoin stands at 19,439,350 BTC, which represents around 93% of its total supply of 21,000,000 BTC.
However, on-chain data shows long-term holders are undeterred by recent price swings. Continued outflows from exchanges could indicate Bitcoin is establishing a new price floor, with significant supply moving to sturdier hands.
As the world’s first and largest cryptocurrency, Bitcoin is widely viewed as a bellwether for the broader digital asset market. Its exchange reserves shrinking to a 4-year low suggests investor conviction remains strong despite lingering macroeconomic uncertainties.