Bitcoin exchanges now own 16% less BTC than the oldest hodlers

Market Analysis

The latest data shows that Bitcoin (BTC) exchanges have less BTC to buy than at any time since early 2018.

On-chain analytics firm Glassnode confirms that as of February 2023, exchange reserves are at five-year lows.

“Wild stat” shows Bitcoin supply maturation

The latest statistics reflect the determination of Bitcoin hodlers, as major exchanges’ BTC balances are in “down only” mode.

As of Feb. 27, the latest date for which data is available, the platforms tracked by Glassnode held a combined 2,272,798 BTC.

It was in March 2018 that the number was previously so low, with March 2020 representing the current all-time high of 3,202,326 BTC.

After the COVID-19 cross-market crash, exchange reserves began to fall, accelerating through the 2022 bear market to stand 29% lower today.

The impressive numbers, meanwhile, do not end there.

As noted by William Clemente, co-founder of Bitcoin-focused research firm Reflexivity, the exchange balance lows mean they now hold less BTC than the oldest hodler addresses.

“There is now more Bitcoin that hasn’t moved in at least 10 years than there is on exchanges. Wild stat,” he commented on Feb. 28.

Glassnode data also puts the total BTC dormant for ten years or more at 2,645,956 BTC — 16% more than the total exchange balance.

No panic selling here

As Cointelegraph reported, hodlers have stepped up their resilience in 2023 after weathering a brutal bear market in the past year.

Related: BTC whale population shrinks to early 2020 levels — 5 things to know in Bitcoin this week

Even as BTC price action headed higher, the hodling continued, with limited sales combined with increasing exposure.

That trend shows little sign of reversing at current levels, with hodlers’ combined net position change reaching four-month highs this weekend.

The views, thoughts and opinions expressed here are the authors’ alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.

Articles You May Like

Ethereum Futures Show Signs of Optimism: Will Positive Funding Rates Drive a Breakout?
Analyst Exposes Ethereum Ascending Support At $2,400 – Best Chance To Accumulate ETH?
Ethereum Surges Past $2,500: What The Futures Market Signals For Traders
Ethereum Must Stay Above $2,480 For This Bullish Signal To Hold True – Analyst
Ethereum Blobs Are ‘Insanely Bullish” For ETH Price: Breakthrough Research