Only 1.3 million bitcoins left in circulation on cryptocurrency exchanges

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In the good news of Orange Christmas, Bitcoin (Bitcoin) Supply is drying up to lows not seen in many years.recently tweet According to CryptoRank, cryptocurrency exchanges hold 6.3% of the total bitcoin supply, or 1.3 million bitcoins.

The reduction in supply is nothing new, it has been on a downward trend since the Bitcoin halving in 2020 The BTC block reward is divided into two. The availability of BTC on exchanges followed closely behind, slowly declining in the past year.Exchange wallet accounts for 9.5% The supply of BTC in October 2020, just before the all-time high of Christmas in 2020, and 7.3% In July this year. The December figure of 6.3% is the lowest record for 2021.

Interestingly, Coinbase’s BTC wallet dominance is also declining. The number of BTCs hosted by US exchanges in the past exceeds the sum of all other exchanges. In the past year, its dominance has fallen from 50.52% to 40.65%.

The news was released after a series of positive price indicators that coincided with Bitcoin’s price increase.First, the lack of liquidity of BTC supply has It’s winter Since the BTC supply has changed from a “liquid” state to a “non-liquid” state, it is now 100,000 BTC per month. In essence, the amount of BTC locked in the cold storage is more than the amount mined.

On-chain analytics company Glassnode shared further good news about transaction behavior. 7-day moving average of BTC exchange inflows arrive A 5-month low of 978.452 BTC and a downward trend every week. As the number of BTC sent to exchanges decreases, exchange supply shortages may continue.

In addition, it’s important to note that many retail investors and some companies store Their BTC on the exchange, Indicating the “lack of liquidity” of BTC may be lower. Some BTC hodlers will give the custody of their keys to the exchange instead of putting their BTC offline in the cold storage.

related: Bitcoin needs to clear $51,000 to reduce the chance of a new BTC whale sell-off

As expected, Changpeng Zhao, CEO and co-founder of Binance Encourage hot wallet practice, Although Bitcoiners like Andreas Antonopolous did their best to ensure “Not your key, not your bitcoin‘Is part of the daily BTC mantra.

Therefore, although 1.3 million BTC relies on exchanges, they may not be “circulated” and may actually lead to insufficient supply.

Nevertheless, despite Call for “Santa Rally”“With the support of bullish analysis, the bears have not yet come out of the predicament. tweet BullRun Invest uses Glassnode data to show that 24.6% of all BTC supply is above the price of $47,000.

This indicates that about a quarter of the BTC purchased at these price levels is currently underwater.if BTC failed to make progress in the 1950s, There may be fewer gifts under the tree tomorrow.