In the past month, major cryptocurrency exchanges have witnessed a significant decrease in their Bitcoin reserves, with over 90,700 BTC being withdrawn. This data, compiled by CryptoQuant, reveals that investors and traders are preparing for the upcoming halving event and anticipating heightened volatility.
The amount of Bitcoin held by crypto exchanges has reached record lows, dating back to the beginning of 2021. This trend of withdrawals is driven by individuals seeking to hold onto their coins for the long term, thereby reducing the available Bitcoin supply for purchase.
Over the years, there has been a noticeable shift of Bitcoin from exchanges to cold storage. This can be attributed to various factors, including the rising price of Bitcoin, the approval of spot Bitcoin ETFs, and the excitement surrounding the halving event. In July 2021, Bitcoin exchange reserves stood at approximately 2.8 million, a decrease of 900,000 coins since CryptoQuant started tracking this data.
However, recent analysis by Glassnode indicates that while a significant portion of Bitcoin is still being traded on exchanges, there has been a transfer of holdings from long-term investors to those with short-term strategies. The report suggests that to address the demand from long-term holders looking to distribute their holdings, the supply of Bitcoin for short-term holders has increased by approximately 1.121 million.
Since reaching its all-time high of $73,000 in mid-March, the market value of Bitcoin, the most valuable digital asset, has experienced a decline of nearly 10%. All eyes are now focused on the upcoming halving event scheduled for mid-April, with investors and traders anticipating heightened volatility during this historic occasion.
In other crypto news, Ripple has expressed its interest in the stablecoin market and plans to launch a USD-backed stablecoin. This development could have significant implications for the cryptocurrency industry.
