The number of Bitcoin (BTC) on exchanges has been on a downward trend for years. The decline in circulating supply leads to ever higher prices.
However, it appears that the number of BTC on crypto exchanges is increasing again, at the fastest rate in months.
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What does this mean for BTC price?
According to data from analytics firm Glassnode, the net amount of Bitcoin in exchange wallets has increased by 31,382 BTC over the past four weeks, worth around $1.167 billion. This is the strongest increase since mid-May. CoinDesk was the first to report this development.
When investors send their Bitcoins back to exchanges, it is usually to sell them. Investors may also want to lock their BTC or use it for margin trading. Nevertheless, selling pressure is increasing.
According to data from Glassnode, the number of BTC on exchanges has been steadily increasing since November 1st. This seems to be a logical explanation as to why the price increase has stalled over the past two weeks.
It seems that short-term investors are choosing to take some profits after the recent price increase. That doesn’t mean a deeper correction is guaranteed, but analysts are worried.
There is also speculation that investors may gradually regain more confidence in the stock markets. Confidence in regular centralized exchanges suffered a major blow in late 2022 with the collapse of FTX, one of the largest crypto exchanges at the time. After the collapse, investors massively withdrew their cryptocurrencies from such exchanges.
Nevertheless, the Bitcoin price is rising again today
Despite this somewhat worrying trend, we are seeing an increase in the price of Bitcoin today. There is speculation that this could be related to the victory of far-right libertarian Javier Milei as Argentina’s new president. He is a Bitcoin advocate.
In total, there are now around 2.25 million BTC on exchanges. At the current price of $37,200, these are worth around $83.7 billion or 76.6 billion euros. Since Bitcoin’s total market cap is currently $727 billion, this means that only 11.5% of the total supply is still on exchanges.