Is the Falling Bitcoin Balance on Exchanges a Sign of an Upcoming Bull Run? Today, we take a close look at the amount of Bitcoin available on exchanges and the important signals it gives the market.
Bitcoin Exchange Balances: Bullish or Bearish Signal?
As a basic principle:
Decreasing exchange balances: This is a bullish signal, indicating that investors are moving Bitcoin to cold wallets and intend to hold for the long term. 🐂
Increasing balance on the exchange: This is a bearish signal, because when coins are transferred to the exchange, there is a high chance that they will be sold. 🐻
Current situation of Bitcoin:
There are currently 2,978,092 BTC available for sale on exchanges, representing about 15.07% of the total circulating supply. Over the past 30 days, Bitcoin balances on exchanges have decreased by 46,203 BTC (equivalent to about $3 billion USD at current prices).
The decrease in Bitcoin balances on exchanges shows that confidence in the long-term potential of this asset is increasing, and investors tend to be reluctant to sell, creating a positive signal for the market.
Comparison with Ethereum:
It is worth noting that Ethereum currently has a lower exchange balance ratio, at just 10.32% of the total circulating supply, compared to Bitcoin's 15.07%.
Why is there such a difference? A large part of it is due to Ethereum staking, where investors can earn profits by committing ETH to the network to secure and validate transactions. As staking becomes more popular, less ETH is available on exchanges, increasing the demand and potential value of Ethereum.
Conclusion: Positive Signals for Both Bitcoin and Ethereum
Both Bitcoin and Ethereum exchange balances are at very low levels, indicating that investors are holding long-term and transferring assets to cold wallets. This is a positive signal for the market, as limited supply on exchanges can lead to scarcity, thereby pushing up the value of digital assets.
