According to Glassnode, as investors waited for higher prices in the bull market, the balances of Bitcoin and Ether users on centralized exchanges dropped significantly.
Bitcoin balances dropped to approximately 2.3 million coins, or approximately $158 billion, and ether balances dropped to 16 million coins, or $58 billion.
According to Glassnode, the decline in cryptocurrency balances that began before the July 2020 bull run continues unabated. This indicates a change in the mentality of investors, who now prefer to hold their coins for a long time rather than actively trade them.
Instead of seeking quick profits, investors hold on to their coins through market ups and downs. Many also use cost averaging, continually buying more assets to gradually build up their positions.
Experts explain this change in sentiment by several factors. Among them are economic turmoil caused by market failures, rising inflation and other financial disasters that have made cryptocurrency a more attractive investment asset.
The positive atmosphere extends beyond retail investors. Institutional giants such as BlackRock and Fidelity are increasing demand for Bitcoin by introducing spot Bitcoin ETFs. Well-known corporations such as MicroStrategy have also made significant investments in the leading cryptocurrency.
