-Bitcoin Exchange Deposits Drop to 8-Year Lows as Rate Cut Looms-

Bitcoin’s (BTC) ongoing struggle to break past the $60,000 mark hasn’t triggered a sell-off among holders. Instead, many are holding onto their assets, as shown by the decline in exchange activity.

The number of daily addresses sending BTC to exchanges has hit a multi-year low, a trend that coincides with the market’s anticipation of the Federal Reserve’s decision at its September 18 meeting.

Bitcoin Traders Hold Onto Their Coins

On-chain data shows a decline in BTC’s Exchange Depositing Addresses, which track the number of addresses sending inflow transactions from the Bitcoin network to crypto exchanges. This metric has been trending downward since reaching its year-to-date peak on March 5.

Over the past week, the number of addresses that have deposited their coins on exchanges has dropped by 19%. When this metric falls, traders or investors are holding onto their coins rather than selling them.

The recent decline in exchange activity coincides with market predictions of a 50% chance for a half-percentage-point rate cut at the Federal Reserve’s meeting on Wednesday.

When Bitcoin’s selling pressure eases ahead of a potential rate cut, it often suggests that investors anticipate a more favorable market environment. This growing bullish sentiment is reflected in Bitcoin’s funding rate, which turned positive two days ago after six consecutive days of negative values.

At 0.003% as of press time, BTC’s funding rate indicates stronger demand for long positions over short ones.

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