Bitcoin Balances on Exchanges Hit Lowest Level Since 2016, Experts Say

Since the beginning of the year, bitcoin balances on centralized platforms have fallen by approximately 15% to 470,000 BTC, indicating a reduction in potential selling pressure. This was reported by CryptoQuant, according to The Block.

This metric has dropped to levels last seen in 2016.

The trend leads to a decrease in available supply and may suggest that coins are being withdrawn for holding purposes.

The number of addresses depositing digital gold on cryptocurrency exchanges has fallen to a multi-year low of 132,100.

“This may reduce selling pressure as fewer coins are available for such transactions. Some traders deposit on derivatives platforms to open long positions, betting on price increases. In this regard, the drop in the metric may also signal a weakening demand for bitcoin,” analysts commented.

In late August, CryptoQuant recorded an increase in the flow of coins to US-based exchanges, which “historically correlates with price increases.”

In the last month of summer, the number of bitcoin wallets with at least 100 BTC rose to a 17-month high (16,120). In August, another 283 addresses joined this category, according to Santiment. Vivek Sen, founder of Bitgrow Lab, noted that historically significant whale purchases often preceded new ATH.