According to data, bitcoin balances on exchanges are shrinking a great deal and have dropped to levels not seen in two years. Arcane Research detailed that charts showing the number of bitcoin leaving exchanges has seen a sharp decline and has been “one of the main stories of the year.” Meanwhile, onchain metrics indicate a number of older coins are being sold as bitcoin’s value increases.
Bitcoin Held on Exchanges Drops by 21% Since February
In 2020 there’s a lot of cryptocurrencies held on exchanges, however, the aggregate number of bitcoin (BTC) held on trading platforms has declined immensely this year. In fact, BTC held on exchanges haven’t been as low as they are today since 2018, according to onchain statistics by Glassnode.
From January 2018 to February 2020, the aggregate total of BTC held on exchanges climbed. However, since February, bitcoin held on exchanges saw a 21.66% drop and remains at levels not seen in two years.
On Tuesday, Arcane Research tweeted about the BTC leaving exchanges and shared a chart displaying the data captured by Glassnode. “One of the main stories of the year has been the sharp decline in the aggregated BTC exchange balance,” Arcane tweeted. “After moving sideways throughout November, the BTC exchange balance has once again started declining,” the researchers added.
Data suggests that cryptocurrency owners might be leery of crypto exchanges after the recent Kucoin hack and withdrawal issues at Okex. While some people suggest that new buyers are becoming long-term holders and assume the self-custody trend will continue to drive demand.
“Bitcoin exchange balances are falling at a rate practically unseen before in history,” the Youtuber Crypto Daily tweeted back in October. “This means fewer people are looking to short term speculate— Bullish.” While November levels remained stagnant, the BTC decline from exchanges picked up during the first week of December.