The percentage of Bitcoin on exchanges has dropped to its lowest level in five and a half years, in December 2017, indicating a growing trend toward self-custody in the cryptocurrency market.
With fewer Bitcoins accessible on exchanges, the supply of the leading cryptocurrency is reduced and the price of BTC may climb more easily in response to an increase in demand.
Bitcoin and other cryptocurrencies have long been linked to the concepts of decentralization and individual freedom. In this regard, self-custody, or the safekeeping of one’s own crypto, is fundamental. It guarantees that dealers never have to trust an exchange or other third party with their digital holdings.
Coinglass reports that the total amount of Bitcoin available across all exchanges was 1.13 million BTC as of May 9, 2023, a decrease of roughly 15% from the level on May 7, 2023. This amounts to around 6% of the entire Bitcoin supply of approximately 18.8 million BTC at the moment. In December of 2017, when Bitcoin was nearing $20,000 per coin, the ratio was last this low.
Santiment, a crypto analytics tool, has shown that just 5.84% of the total supply is being traded. It’s important to keep in mind that data may vary between platforms owing to possible changes in how exchange wallets are recognized.
With less Bitcoin being sold back to exchange wallets, it seems more people are storing their currencies for the long term. In light of the continuous economic instability and monetary stimulus, this may indicate growing trust in and enthusiasm for Bitcoin as a store of value and inflation hedge.
After the FTX hack, many people are wary of letting centralized platforms retain their money, particularly if they aren’t utilizing the platform to make trades. This may have led some users to start self-custody of their assets.
Former Goldman Sachs executive Raoul Pal has expressed confidence in the future of the cryptocurrency markets, as reported by CryptoGlobe. He thinks the cryptocurrency market will recover from its present downturn much more quickly than it did in 2019, and that significant growth will occur over the next six months.
Goldman Sachs found that the chaotic volatility of the crypto market over the last year has caused a significant drop in excitement for cryptocurrency among rich family office investors.
Also Read: The US Securities And Exchange Commission Cannot Be Trusted To Oversee Crypto Trading
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