© Reuters.
NEW YORK – Recent data from CryptoQuant Pro indicates a significant behavioral shift among bitcoin investors, who are increasingly moving their holdings from exchanges to custodial wallets. This trend, which became noticeable after 2020, suggests a growing preference for holding bitcoins over selling. This change stands in stark contrast to the steady increase in bitcoin reserves on exchanges observed between 2013 and 2020.
As of today, the amount of bitcoin held in exchange wallets stands at approximately 2.04 million BTC, worth approximately $73.3 billion. This figure represents more than a tenth of the total circulating supply of bitcoins and is significantly less than a third from its peak in 2020. The decline in the number of bitcoins held on exchanges indicates a potential shift in market dynamics. Future bull markets could be driven by a decline in buyer activity, as investors’ preference for holding on to their assets could reduce the amount of bitcoin available for purchase on exchanges.
In addition, this trend towards self-ownership also implies a reduction in custody risk. Investors have become more cautious about where they store their digital assets following high-profile incidents such as the FTX collapse. Despite the significant speculative supply that historically characterizes stock exchange reserves, the price of has reached record highs in 2021 due to exceptional demand, underscoring the resilience of cryptocurrency and investor confidence, even in the face of the reduction of stock market liquidity.
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