On-chain data shows that the Bitcoin supply on exchanges has continued to go down despite the crash, and has now hit a multi-year low of 13.27%. Percentage of Bitcoin Supply On Exchanges Sinks To Multi-Year Low As per the latest weekly report from Glassnode, the percentage of the BTC supply on exchanges has now declined to a multi-year low of around 13.27%. The “percentage of supply on exchanges” is an indicator that measures the percent of the total circulating Bitcoin supply that’s currently stored in exchange wallets. When the value of this indictor goes up, it means the amount of coins held by exchanges is going up. This trend can be bearish for the price of the crypto as investors usually deposit their BTC to exchanges for selling purposes. On the other hand, when the metric moves down, it implies holders are withdrawing their coins from exchanges, thus reducing their reserve. Such a trend may be bullish for Bitcoin as the supply on exchanges is usually considered the selling supply, and it going down would mean there is lesser sell pressure in the market. Related Reading | Why Bitcoin Could Hit $90K By The End Of 2022, According To This Prediction Now, here is a chart that shows the trend in the percentage of BTC supply on exchanges over the past year: Looks like the value of the indicator has been on a downtrend for a while now | Source: The Glassnode Week Onchain - Week 5, 2022 As you can se...
