As most people pay close attention to the Bitcoin price, it remains pertinent to look at other aspects. An interesting scenario ensues with the exchange balances hitting a two-year low and addresses sending BTC to exchanges decreasing. It is effectively becoming more challenging to obtain BTC these days.
Exchanges Keep Losing Appeal
For the longest time, many people have defaulted to sending Bitcoin to exchanges. These platforms provide trading opportunities and a wallet service, creating a compelling option. However, moving funds to an exchange is always risky. Users give up control over their funds, and exchanges can get hacked or breached. It is never a smart idea to keep funds in an exchange wallet for a more extended period.
Slowly but surely, the situation is improving. More specifically, fewer users are sending Bitcoin to exchanges. A new one-month low has been recorded today, indicating something is changing. Some may see this as an odd sign, considering how bullish the Bitcoin price is lately.
It is not the first time these low levels have been reached either. A similar low took place a few days ago. These are levels last seen since late January 2021, indicating there is a certain shift in mindset. Continuing down this path will prove beneficial to the broader cryptocurrency industry.
Bitcoin is designed to be a scarce asset. If too many people send it to exchanges and trading platforms, it becomes “too easy” to obtain. Avoiding such a scenario is likely to drive up the BTC price, which may result in a new all-time high above $60,000.
Exchange Balances Keep Drying Up
Speaking of the exchange balances for Bitcoin, this number keeps decreasing rapidly. As a two-year low is now in place, one has to wonder when the supply will drop below 2 million. Fewer BTC on these platforms will always prove beneficial. As there is now barely over 2.41 million BTC in exchange balances, things are certainly heading in the right direction.
As this downtrend continues unabated since early 2020, a recourse seems unlikely. There is no reason for users to deposit more BTC on exchanges today or in the future. At prices like these, selling may be somewhat premature. The upside potential remains unclear, but a six-digit BTC price is not out of the question. If and when that will be reached is a different matter.
All of these statistics clearly indicate that Bitcoin is slated to undergo some intriguing changes. With fewer BTC sent to exchanges and the supply in exchanges balances going down even further, the coming months and years will prove very interesting.