Only 1.3 Mln Bitcoin left In Circulation On Crypto Exchanges.

Only 1.3 Mln Bitcoin left In Circulation On Crypto Exchanges.

2021-12-24 | Selina Mathew

Only 1.3 Mln Bitcoin left In Circulation On Crypto Exchanges.

Bitcoin (BTC) supply is dwindling to levels not witnessed in years. According to the latest Twitter post by CryptoRank, cryptocurrency exchanges own just 6.3 percent of the total Bitcoin supply or 1.3 million BTC. The diminishing supply is hardly unusual, given that has been moving downward since Bitcoin's halving in 2020, whenever the BTC block reward was slashed in half. BTC supply on exchanges joined the suit, gradually declining over the last year. Exchange wallets stood for 9.5 percent of the BTC availability in October 2020, shortly before the all-time highs during the 2020 Holiday season, and 7.3 percent in July this year. The December result of 6.3 percent is the lowest since 2021. Surprisingly, Coinbase's supremacy in BTC wallets is also eroding. The American exchange managed to have more BTC than the rest of the exchanges together. In the last year, its supremacy has dipped from 50.52 percent to 40.65 percent. The announcement comes on the heels of a slew of positive price measures that correspond to Bitcoin's higher price movement. For starters, the illiquid BTC supply has frozen for the winter, with the BTC supply transitioning from a "liquid" to an "illiquid" condition presently at 100,000 BTC every month. In effect, more BTC is locked up in cold storage than is mined. Glassnode, an on-chain analytics startup, released more encouraging information on exchange behavior. The seven-day moving average for BTC exchange inflow traffic recently hit a 5-month low of 978.452 BTC and it has been drifting downward week on week. The exchange supply shortfall may worsen if fewer and fewer BTC are supplied to exchanges. Moreover, many individual investors and certain businesses keep their BTC on exchanges, implying that the 'illiquid' BTC may be considerably lower. Notwithstanding the finest endeavors of Bitcoiners like Andreas Antonopolous to ensure 'not your keys, not your Bitcoin' is a component of the daily BTC motto, Binance CEO and co-founder Changpeng Zhao has pushed the hot wallet practice. As a consequence, while 1.3 million BTC are held on exchanges, they would not be trading and may add to the illiquid supply. Nevertheless, amid expectations for a "Santa Rally" in response to bullish statistics, the bears are not yet out of their caves. According to a tweet from Bullrun Invest based on Glassnode statistics, 24.6 percent of all BTC supply is over the $47,000 mark. It implies that nearly a quarter of the BTC purchased at those prices is presently submerged. If BTC misses to reach the 50s, there may be fewer gifts in Santa's bag tomorrow.

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