Bitcoin Assets Owned By The Exchanges Has Decreased Significantly

Bitcoin assets owned by the exchanges has decreased significantly. Bitcoin supply is at the lowest levels since August 2018.

On-chain data has revealed that the number of Bitcoins on cryptocurrency exchanges has begun to decrease further in recent days. According to the data of CryptoQuant, as of February 11, 2021, the number of Bitcoins in the wallets of exchanges decreased to 2 million 359 thousand 48. This level was last recorded on August 29, 2018. Exchange reserves have not decreased this much in the last 3.5 years since then. Currently, Bitcoins in exchange wallets account for 12.44 percent of all Bitcoins (18.95 million BTC in circulation). Burak Tamaç, author of Uzmancoin and Community Manager of CryptoQuant, said the following: “First of all, this data is available for all to see in the free version of CryptoQuant. Here is the logic: Institutional purchases are made on exchanges, but of course, they are made via OTC (over-the-counter transaction), not the 'trading board'. For example, sometimes a large amount of Bitcoin is transferred from Coinbase to a cold wallet. The cold wallet is actually the wallet of the custodian service of Coinbase. However, since it is out of the exchanges, it is no longer a Bitcoin that can be bought. So it's not liquid. This actually shows us the following: If we think of exchanges as market stalls, the number of products in these stalls decreases. This will also have a positive effect in the long run, because if we consider that the demand will increase, the supply is already limited, and the amount of Bitcoin that the exchanges can sell decreases."