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- A total of only 6.3% of total Bitcoins supply or 1.3 million BTC is held on cryptocurrencies exchanges.According to a report, the seven day moving average of the token’s exchange in flow volume just tanked to a 5 month low of 978.4 BTCs.
- More BTCs are moved into cold storages away from Exchanges.
- However, since a significant number of tokens are still stored on exchanges, which makes the 1.3 million figure even less in reality.
Bitcoin has been the largest, most precious & by far the most famous cryptocurrency that made sure the sector caught attention, launching it into the mainstream while some calling it the digital gold. However, as more people get well versed with the mechanisms, users & companies prefer to store their private keys into storage away from online cloud-based exchanges.
Since then the decreasing supply of the tokens in exchanges isn’t something new while going down since BTC halved in 2020 when the block reward was cut in two where a newly mined block only generates 6.25 new BTC. The exchange wallets held for 9.5% around Christmas of 2020 while currently standing at 6.3% or 1.3 million BTC in circulation.
Interestingly, while the most popular exchange, Coinbase, has continued to dominate & lead the race among exchanges, its BTC wallet of custody has also slipped from 50.52% recorded last year to 40.65% in 2021.
The Fact bears more assertions as there appears to be a reduced intention of miners & hodlers to sell their BTCs at current price levels, consequently dissolving the idea of the spare supply of tokens. A tweet from on-chain analytics company, Glassnode interprets that 24.6% of all supply lays above the price levels of $47,000 which also means that the supply of tokens is currently transitioning from liquid to ill-liquid states while approximately 100,000 BTC tokens transitions every month into ill-liquidity.
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More data from Glassnode suggests, the average 7- days for BTC’s exchange inflow volume tanked to its 5 month low of 978.4 BTCs while the trend expects itself to continue further, declining by every week. At the same time, it is also reported that many investors & hodlers believe in & feel more secure in storing their tokens offline, in cold storage away from ever-connected cloud-based exchanges which have resulted in more tokens being knuckled out of the circulation in contrast to the number of tokens being mined.
However, even though most suggest safeguarding their keys offline, some investors & users still store their BTCs on the exchanges pointing out that 1.3 million figures might be even less in reality & the fact that they may not be in circulation consequently contributes to the illiquid supply of the tokens.
The price of Bitcoin has been through quite the roller coaster this year, while the crypto king fared new highs of $68,000 plus levels it fell blunt onto the prior below $46,000 levels while the Santa helped the tokens to find more redemption to $50,000 plus levels, at the time of writing Bitcoin is trading at $50,784.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
