Key facts:
The amount of bitcoin on exchanges has dropped to 2018 levels.
Year-to-date, BTC on these platforms is down 10%.
Investors and accumulators of bitcoin (BTC) seem to be bringing calm to the cryptocurrency market, in the midst of the sustained bearish trend of this year 2022 that has taken the cryptocurrency to around 20,000 dollars per unit. At least that’s what data on the flow of BTC on exchanges shows.
As can be corroborated in graphics from the firm Glassnode, the participants of the exchanges they have been withdrawing your coins from these platforms at a brisk pace during the months of this bear market. This type of activity is usually associated with a behavior of saving or holding BTC in the long termwhile investors await further upward movements.
In fact, the amount of BTC on exchanges is currently at levels not seen since the “crypto winter” of 2018. Right now, there are just over 2.4 million bitcoins deposited in exchange wallets. Just like in August of that year. At that time, bitcoin was not even reaching $10,000 and now it is over $20,000.
The number of BTC in exchanges is well below the 3.15 million that existed in mid-March 2020 (all-time high to date). It also represents a decrease of the BTC in the exchange platforms that is around 10% compared to the beginning of this year.
A shrinking bear market?
While investors have chosen to keep their bitcoins instead of selling on exchanges during a bear market, other data from the Bitcoin network seems to give positive signs for the future of the price.
This was recently considered by the Colombian analyst Juan Rodríguez, during his participation in the Blockchain Summit Latam in Panama. As we reviewed in CriptoNoticias this Wednesday, July 6, Rodríguez assured at the event that the increase in users over time, something that continues today, was key to the appreciation of the asset in the market.
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In addition, he pointed out that bitcoin is at an opportune time for purchase, because it is below the average purchase price of most market players.
On the other hand, Glassnode announced a few days ago that this bear market has expelled “tourists”, referring to speculators. Long-term investors would then be holding the price, as exchange-related data suggests.