According to market intelligence platform Santiment, there are at least 400,000 fewer Bitcoin on exchanges than at the same time last year, which is a promising indicator for the market.
Since December 7, 2024, over 403,000 Bitcoin (BTC) have been withdrawn from exchanges, representing approximately 2% of the total supply, Santiment reported in an X post on Monday, referencing data from its sanbase dashboard.
Typically, users transfer their Bitcoin into cold storage wallets away from exchanges, which theoretically makes them harder to sell and may indicate plans for long-term holding.
“In general, this is a positive long-term sign. The fewer coins that are on exchanges, the less likely we’ve historically seen a significant sell-off that creates downward pressure on an asset’s price.”
“As Bitcoin’s market value hovers around $90K, the leading crypto continues to see its supply move off exchanges,” Santiment further noted.
Bitcoin is also moving into ETFs
While much of the Bitcoin on exchanges may be returning to holders’ wallets, Giannis Andreou, founder and CEO of crypto miner Bitmern Mining, suggested that exchange-traded funds (ETFs) are also absorbing these coins.
Referencing data from BitcoinTresuries.Net, Andreou indicated that ETFs and public companies now possess more Bitcoin than all exchanges combined, following years of outflows and quiet accumulation by ETFs.
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“Institutional ownership has subtly entered a new phase: a less liquid supply, more long-term holders, and stronger price reflexivity, with the market being driven by regulated vehicles rather than trading platforms,” Andreou remarked.
“This transition is more significant than many realize. Bitcoin isn’t being moved to exchanges anymore; it’s being transferred directly to institutions that have no intention of selling easily. The supply squeeze is developing in real-time.”
ETFs and private companies possess more Bitcoin than exchanges
Crypto data analytics platform CoinGlass exhibits a similar trend, with Bitcoin on exchanges totaling around 2.11 million as of November 22, when Bitcoin was undergoing a correction and trading for about $84,600.
BitBo indicates that ETFs are holding over 1.5 million Bitcoin while public companies hold more than one million, collectively representing nearly 11% of the total supply.
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