Skip to content

Bitcoin supply on exchanges hits lowest in 5 years; Here’s why

Bitcoin supply on exchanges hits lowest in 5 years; Here’s why

The supply of Bitcoin (BTC) on cryptocurrency exchanges has hit its lowest amount in the past five years, as investors continue to pull their assets off them due to declining confidence in crypto trading platforms that have been under constant pressure by regulators in recent months.

Indeed, the overall supply of Bitcoin on exchanges is down to a mere 5.38%, which is the lowest point since December 2017, according to the most recent information shared by crypto on-chain and social metrics platform Santiment in an X post published on November 29.

As the analysts explained, investors have continued to move their Bitcoin into self-custody “as exchange reputation continues to diminish,” exacerbated by the recent settlement between Binance and the United States regulators, as well as the lawsuit against Kraken by the US Securities and Exchange Commission (SEC).

Bitcoin vs. Tether supply on exchanges. Source: Santiment

At the same time, the ten largest exchange crypto wallets with Tether (USDT) are holding $15.23 billion worth of the stablecoin, “pushing exchange power to its highest level in 17 months,” or since June 2022, as the platform’s team explained using the above chart.

Bitcoin price analysis

Meanwhile, the maiden cryptocurrency was at press time changing hands at the price of $38,240, recording an increase of 3.14% in the last 24 hours, as well as gaining 4.24% across the previous seven days and advancing 10.67% over the past month, as the latest charts suggest.

Bitcoin 30-day price chart. Source: Finbold

Interestingly, the declining amount of Bitcoin on crypto exchanges has moved in the opposite direction from the price of the flagship decentralized finance (DeFi) asset since early June 2023, coinciding with the SEC charging Coinbase (NASDAQ: COIN) with operating as an unregistered securities exchange.

Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.

Best Crypto Exchange for Intermediate Traders and Investors

  • Invest in cryptocurrencies and 3,000+ other assets including stocks and precious metals.

  • 0% commission on stocks - buy in bulk or just a fraction from as little as $10. Other fees apply. For more information, visit etoro.com/trading/fees.

  • Copy top-performing traders in real time, automatically.

  • eToro USA is registered with FINRA for securities trading.

30+ million Users
Securities trading offered by eToro USA Securities, Inc. (“the BD”), member of FINRA and SIPC. Cryptocurrency offered by eToro USA LLC (“the MSB”) (NMLS: 1769299) and is not FDIC or SIPC insured. Investing involves risk, and content is provided for educational purposes only, does not imply a recommendation, and is not a guarantee of future performance. Finbold.com is not an affiliate and may be compensated if you access certain products or services offered by the MSB and/or the BD

Read Next:

Finance Digest

By subscribing you agree with Finbold T&C’s & Privacy Policy

Related posts

Sign Up

or

By submitting my information, I agree to the Privacy Policy and Terms of Service.

Already have an account? Sign In

Disclaimer: The information on this website is for general informational and educational purposes only and does not constitute financial, legal, tax, or investment advice. This site does not make any financial promotions, and all content is strictly informational. By using this site, you agree to our full disclaimer and terms of use. For more information, please read our complete Global Disclaimer.