Bitcoin exchange balance hits five-year low, large withdrawals may indicate long-term holding strategy

Bitcoin balances on exchanges have recently been trending lower, indicating that investors are turning to long-term holding strategies.

Definition: Exchange balance refers to the total amount of tokens stored on the exchange address.

Bitcoin exchange balances are on a downward trend, hitting levels not seen since March 2018, with total balances currently below 2.3 million BTC.

As of the latest data, major exchanges Binance and Coinbase have seen significant large BTC withdrawals, which may indicate that investors are turning to long-term holding strategies.

Total amount of Bitcoin on exchanges over the years｜Source: Glassnode

Large withdrawals from major exchanges like Binance and Coinbase are the main factors driving this change:

Binance, the exchange with the largest Bitcoin reserves, has experienced massive BTC withdrawals over the past year.

Coinbase recorded the third largest outflow of 2024, with nearly 16,000 BTC moved out in a single day.

This withdrawal trend may mean that large holders ("whales") are moving assets to private wallets in anticipation of future Bitcoin price increases.

Total amount of Bitcoin exchanged in the past 30 days｜Source: Glassnode

These trends reflect broader market sentiment, and investors may be preparing for a bull phase of Bitcoin price growth by reducing supply on exchanges, which could push prices higher in the near future.

The above is the detailed content of Bitcoin exchange balance hits five-year low, large withdrawals may indicate long-term holding strategy. For more information, please follow other related articles on the PHP Chinese website!