Bitcoin Balance Sheets of Cryptocurrency Exchanges Have Dropped Significantly

According to the latest on-chain reports, BTC held over cryptocurrency exchange has reached two-year lowest position. While addresses holding at least one Bitcoin has also claimed an all-time high value.

Since February 2020, the BTC balance sheets of cryptocurrency exchanges have been decreasing. As per the data revealed by on-chain analytics firm Glassnode, Bitcoin over crypto exchanges has dropped to a position witnessed last time in 2018. Since February, exchanges’ Bitcoin balance has dropped by more than 21.6%.

Two-Year Low Position

In its recent market scenario, another on-chain Arcane Research reported that funding rates over top-rated exchanges, such as Binance, FTX, Deribit, BitMEX, and OKEx, have decreased significantly. “The last week has seen futures premiums and funding rates cooling down, signaling a much healthier state for bitcoin than the overly confident environment we had last week,” it added.

Arcane Research further noted that “aggregated BTC exchange balance” has declined to a great extent. The trend has started some months back and is still continued.

There are some factors that are behind the decreasing BTC balance over the crypto exchanges. Some market observers say people are avoiding crypto exchanges to store their crypto assets because they are not credible for this due to hacking risks. Since the creation of Bitcoin on the part of Satoshi Nakamoto, various cryptocurrency exchanges have become vulnerable to hacking attacks which result in loss of millions of dollars.

On the other hand, there are people who believe traders and investors are transferring their funds from exchanges into their personal wallets because they want to hold Bitcoin for a long time. In an attempt to become long-term holders, they are emptying their exchange wallets and sending them to their personal wallets as they are more safe and secure.

On-chain analytics firm Glassnode has noticed another bullish trend that BTC addresses carrying more than one Bitcoin have witnessed an all-time high value of 826,363. The market trends show people are now favoring self-custody options rather than storing their funds over exchanges.

What’s more, institutional clients prefer personal wallets to hold Bitcoin for a long period of time.

At press time, the price value of Bitcoin is standing at $19,251 after a slight decrease of 0.20% over the last 24-hours. The price is struggling at around $19,000 but is unable to break above $20 due to a hard wall created at $20,000.

Leave a Reply

Your email address will not be published.

Related

FTX Launches Stock And ETF Trading Option In The United States 

A prominent cryptocurrency exchange, FTX, is getting into the stock trading business. Soon, its users will be able to trade equities and exchange-traded funds on the platform.  Only A Few Users In The United States To Enjoy The Service  The Wall Street Journal reports that the firm Sam Bankman-Fried helped establish and serve as its […]

Major Australian Bank Shelves Crypto Launch Plan

CBA’s Crypto App Plan As previously mentioned last year, Australia’s biggest bank disclosed plans to let its users carry out crypto-related transactions on its app.  It has been taking its plan to develop the project but as not stated a particular time it will finally launch the project to the public. It also has plans […]

INFINOX Review – A Broker For All Traders and Investors?

INFINOX Trading Platform Rating 4.5 Summary Read our INFINOX review at FStar Capital Forex and Cryptocurrency Trading blog, find the answer to your question “is INFINOX scam or legit” and much more! We have checked all the aspects of this broker and we recommend INFINOX for online trading. It is NOT a scam. You can […]

Crypto Investors Suffer from Lingering Fears

The Situation at Hand The drastic drop and decline that befell the digital asset market last few weeks have left a mark on the users and investors of crypto, with crypto coins and other assets experiencing their lowest of lows and even stablecoins being affected, it’s no surprise that both old and new investor is […]

Cardano (ADA) Whales on Panic Selling Mode: Here’s Why

  Cardano’s price appears to hold the line following the 57% slump to $0.384. Nevertheless, the immediate obstacle at $0.677 might limit further recovery by ADA. A daily candle closing beneath $0.397 will annul the already precarious optimistic tale. Cardano sees its price staying well beyond the latest swing low that printed a possible bottom […]