The number of Bitcoin addresses sending BTC to exchanges continues to drop
With the decline in the price of bitcoin, there has been a lot of selling by investors. This sell-off trend has contributed to a further decline in the prices of digital assets in recent times. However, as the bear run continues, there has been a marked reduction in the amount of BTC being sold by its holders. The decrease in the number of addresses sending their coins to centralized exchanges speaks for itself.
Sellers are starting to cool down
Over the past year, the number of bitcoin addresses that had sent BTC to centralized exchanges, presumably to sell their holdings, had grown tremendously. But had begun to decline in recent weeks as sales had begun to decline.
In accordance Glass node, the number of addresses sending bitcoin to exchanges had fallen to a new 22-month low on Thursday. The number had been around 4,445,369. But on Friday, another consecutive decline was recorded. This time, the number of addresses sending BTC to exchanges was 4,443,202.
Bitcoin falls to mid-$18,000s | Source: BTCUSD on TradingView.com
That’s a far cry from the more than 6,000 wallets sending BTC to centralized exchanges in mid-2022. While the increase in wallets sending BTC to exchanges had correlated with the price decline back in Q2 2022, the opposite is now the case, with the decline coinciding with the drop in the price of bitcoin.
What this means for Bitcoin
Naturally, data like this points to the fact that there is an increasing accumulation trend among investors, but not all metrics point to this. One example is the HODLer net position change that was registered by Glassnode on Friday.
Instead of being on the rise as expected in an accumulation trend, is HODLer net position change continues to decline. It has now hit a new one-month low of 51,997,708. This shows that while there may be some sell-off fatigue, there is still enough to put pressure on the price of the digital asset.
The amount of active bitcoin supply is always on the rise. It has now reached a new one-month high of 718,437,728 BTC. That’s up slightly from the previous 9/11 high of 717,097,427 BTC, and still lends credence to the fact that selling continues.
Bitcoin’s price is also succumbing to the selling pressure. The digital asset is currently trading below $19,000 and is showing no indicators of a significant recovery.
Featured image from CNBC, charts from TradingView.com
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