Exchange held Bitcoin relative to supply reaches lowest level in 5 years

exchange682 weeks ago

0 3 1 minute read

Bitcoin’s exchange supply ratio has declined to 0.13, the lowest level since February 2018. This ratio, measuring the proportion of Bitcoin held on exchanges relative to the total circulating supply, was at 0.18 at the start of 2022 and 0.158 at the beginning of this year.

Bitcoin Exchange supply ratio (Source: CryptoQuant)

A decreasing exchange supply ratio suggests more Bitcoin is moving off exchanges into personal wallets or cold storage. This shift may indicate investors are opting for long-term holding strategies, reducing the immediate availability of Bitcoin for trading or selling.

The current low ratio could imply decreased selling pressure and liquid supply, potentially affecting Bitcoin’s price movements in the near future.

Analyst

Liam ‘Akiba’ Wright

Editor-in-Chief at CryptoSlate

Also known as “Akiba,” Liam Wright is a reporter, podcast producer, and Editor-in-Chief at CryptoSlate. He believes that decentralized technology has the potential to make widespread positive change.

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