Bitcoin held on exchanges drops below 2.9 million, marking the lowest balance level since 2019 and indicating stronger long-term holding trends.
Institutional buyers, including treasury firms, have rapidly accumulated over 100,000 BTC since April, moving coins from exchanges to custody.
ETF-related custody wallets now hold over 800,000 BTC, contributing heavily to the ongoing drain in exchange-based Bitcoin supply.
The number of Bitcoins held on centralized exchanges has declined to under 2.9 million, reaching its lowest point in six years. On-chain analytics by Glassnode indicate that it is a major milestone in the supply figures of Bitcoin, and hopes have been stoked of a possible supply shock.
Exchanges of Bitcoins have experienced a gradual decrease in their balances since the middle of April. In the recent few months, more than 150,000 BTC have moved off exchanges into cold storage wallets. This change indicates that investors are becoming interested in long-term holding instead of short-term trading.
Large Buyers and Treasury Firms Lead the Exodus
One of the key drivers behind the outflow has been institutional buying activity. New treasury companies have collectively acquired over 100,000 BTC between April and July. In the past week alone, 5,898 BTC were moved into long-term custody by such firms. Notably, Michael Saylor’s company has announced another purchase plan, influencing similar actions by ProCap Financial and GameStop.
https://twitter.com/WhaleInsider/status/1939353332163723711
Another major factor contributing to the decline is the growing popularity of Bitcoin ETFs. Since their market entry, more than 800,000 BTC have now been secured in ETF trust wallets. This trend reflects strong demand from traditional investors seeking indirect exposure to Bitcoin, further reducing the amount available on trading platforms.
Implications of Falling Exchange Balances
Historically, falling exchange balances often align with upward price momentum, as fewer coins become available for immediate sale. This has led some market participants to anticipate a price rally if demand persists. However, despite these bullish signs, some analysts remain cautious, citing possible market corrections.
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