Bitcoin (BTC) owners get it directly from exchanges when they want to buy Bitcoin. The amount of Bitcoin held on leading exchanges has fallen to its lowest level since November 2018, according to published data.
Data shared by Glassnode shows that most bitcoin owners withdraw their savings from exchanges and prefer long-term investment. “90 percent of investors keep their money long-term.” said.
Current data shared by Glassnode said bitcoin balances on exchanges had fallen to their lowest level in two years. During the downturn two years ago, the Bitcoin network had a hard fork, with BTC owners moving their money into their private wallets.
Bitcoin drop in exchanges could lead to a price rise
On April 14, when a similar process took place, Glassnode, who posted a tweet saying that Bitcoin deposits withdrawn from exchanges indicated an increase in the amount of long-term investment.
According to Mike Alfred, chief executive of Digital Assets Data, this drop in exchanges could trigger a rise in the BTC price. Speaking to CoinDesk, Alfred said::
“THERE IS NO REASON TO SELL [BTCS] NOW WHEN THERE ARE BIG INSTITUTIONAL INVESTORS LIKE MICROSTRATEGY. WHY SELL WHEN YOU HAVE THE POTENTIAL TO INCREASE THE NUMBER OF INSTITUTIONAL INVESTORS? “
Cryptocurrency investors are known to have increased since the outbreak of the Coronavirus began. These investors, mostly from traditional financial markets, prefer foreign services to manage their cryptocurrency portfolios rather than trading on cryptocurrency exchanges. The decline in the Bitcoin balance on exchanges may also be largely due to this preference.
