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.