On-chain metrics reveal that Bitcoin balance on cryptocurrency exchanges continued its macro decline. The figures have reached 2.4 million BTC, which is around 12.6% of the circulating supply.
According to Glassnode, Bitcoin exchange balances witnessed a macro outflow of more than 4.6% of the circulating supply after reaching an all-time high on March 2020.
The balance on exchanges shrunk considerably in the last few months.
This is a healthy sign of Bitcoin’s long-term performance and underscores a strong demand at lower price levels.
The reversal in the trend first started in April.
As the crypto winter deepens, some investors offloaded their wallets.
However, on a macro level, players are still holding onto their tokens, but not on the exchanges.
Instead, they are storing their coins offline in crypto wallets.
The crypto analytic firm had earlier stated:
“Bitcoin has seen a near complete expulsion of market tourists, leaving the resolve of HODLers as the last line standing”
The further decline comes in the wake of Bitcoin performing an impressive rally, increasing by over 15% over the past few days. At the time of this writing, the cryptocurrency trades at around $23,600.
Previous reports suggested that the holders of the world’s largest cryptocurrency were in an accumulation mode that subsequently did result in a short-term relief rally.
It will be interesting to see if Bitcoin manages to retain the present momentum.
Craig Johnson, chief market technician at Piper Sandler Companies had recently weighed in on the price action and said that only a close above $26,000 or $28,000 could finally put a stop to the downward slide that the crypto-asset has been on since April.