Many Bitcoin investors are becoming long-term holders or are playing by the rule “not your key, not your coin.” Data shared from Glassnode, a digital currency analytics platform, showed that a significant number of Bitcoin has been leaving Coinbase, a leading US-based cryptocurrency exchange, since the beginning of the year.
Less Bitcoin balance on all crypto exchanges is likely to set the BTC market in a bullish rally.
Coinbase’s Bitcoin balance reduced by nearly $8 billion
By early January, the crypto exchange had a balance of over 970k BTC, according to Glassnode data. However, in less than three months, Coinbase’s Bitcoin balance has decreased by over 150,000 BTC. This means about $8 billion in Bitcoin has been transferred off the exchange at today’s price of $53,678. It could be that Coinbase users may have withdrawn some BTC to other exchanges. However, it’s more likely to have been transfers to external wallets or cold wallets.
Amid the recent spike in the market value of Bitcoin, many investors had preferred moving their coins to external wallets for security reasons. For instance, millions of dollars in Bitcoin were transferred off the Coinbase exchange yesterday.
This becomes more evident as Bitcoin balance on all exchanges has been decreasing for months now, according to CryptoQuant. This is somewhat indicative of the possibility that BTC investors are turning to long-term holders.
All exchange BTC reserve is dipping
From May 2020 till date, there has been a decrease in the number of Bitcoin in all crypto exchanges from as high as 2.9 million BTC to about 2.3 million BTC.
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