Crypto exchanges store the smallest amount of Bitcoins for a year and a half. This emerged from data analysis company Santiment. According to the company’s analysis, the digital currency exchange held around 12 percent of the fixed supply of BTC as of December 13, 2021.
In its analysis, Santiment argues that the volatility of the coin is responsible for the decline in the stock. The cryptocurrency empire has been in turmoil for the past few weeks. This resulted in a loss in value below the $50,000 mark.
Positive outlook for BTC
However, the company expects a positive outlook for the coin. He believes this declining offer limits opportunities for significant redemptions by BTC holders.
Once again, Santiment points out that offering Bitcoin on an exchange is an indication of the operation of its network. So that it can show the short and medium term direction of the cryptocurrency.
The most obvious explanation for this turn of events is that consumers have removed their bitcoins from exchanges. One assumption is that many prefer to store them in cold stores. They believe that BTC will appreciate in value in the long run.
Coincidentally, Bitcoin transaction value dropped to a ninety-day low. These figures, in turn, confirm the above idea. In addition, continued holding reduces selling pressure. This is due to increased investor confidence in continuous monitoring of the bearish trend.
Bitcoin Whale is HODLing
Overall, these dives below the $50,000 mark indicate an increase in the mark’s accumulation. Bitcoin whales have opted for HODLing and are expecting a price rally. This HODLing protects investors from sudden price changes.
The increase in HODLing continues with the increasing use of BTC as a means to store value. At the time of publication, it was trading at around $49,000. The price is less than one percent for 24 hours.
Alternatively, a decrease in the supply of BTC could mean consumers are switching to a new trading platform. Mobile apps, for example, are increasingly becoming an alternative to stock exchanges. They give cryptocurrency enthusiasts the flexibility and convenience of trading that exchanges don’t have.
The growing popularity of these alternative platforms has coincided with persistent restrictions on various exchanges. Regulatory authorities in many countries have tightened their oversight of these platforms, which has caused uncertainty among investors.
Therefore, some were forced to withdraw their deposits from the exchange. They do this in anticipation of some exchanges restricting access to consumer funds.