The total amount of bitcoin on exchanges has reached its lowest point in two years. This metric has been falling since the beginning of 2020.
While the amount of bitcoin on exchanges has reached a low point which we have not seen since August 2018, the rally has come to a standstill for a while. According to Glassnode data, there is a total of about 2.3 million bitcoin roaming around on exchanges.
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Bitcoin on exchanges has been growing since 2014, but is now falling sharply
The total amount of bitcoin on exchanges has increased substantially since 2014. This is not surprising, of course, as many of the bitcoin now in circulation have only been mined in recent years.
At the beginning of 2014, exchanges were still managing 350,000 bitcoin and in January of this year the number was almost 3 million. An increase of 750%. In the meantime that is only 2.3 million and a lot of bitcoin has been removed from exchanges.
In August this figure was still 2.6 million bitcoin and last week we tapped the 2.3 million. That is still a mountain of bitcoin, but the scarcity is slowly starting to strike.
Number of bitcoin on stock exchanges is falling, price is doing well
While the number of bitcoin on exchanges is falling sharply, the bitcoin price is doing well. Earlier this year we fell back to below $4,000 due to the news surrounding corona. In the meantime, however, we have come back firmly and are currently close to $17,000.
Simultaneously with the decline in bitcoin on exchanges, the price continued to climb to $19,500 this month. From there we got a small tap and we have to wait and see where the ship ends up.
Earlier today we reported on whales again sending bitcoin to exchanges. But it seems that this is not going to stop the outflow. CryptoQuant figures, for example, showed that there was still a net outflow of 3559 bitcoin at OKEx.
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