Bitcoin, Ether Supply On Exchanges Fell In June
According to Goldman Sachs (GS), the supply of bitcoin (BTC) and ether (ETH) on exchanges dropped in June as increased regulation and crime persuaded holders to prefer self-custody, according to on-chain data.
According to the analysis, supply of bitcoin, the largest cryptocurrency by market size, fell 4%, approaching the level of December 2022, which was the lowest since November 2020 – and right before the start of the 2021 bull market. The supply of ether fell 5.8% to levels not seen since May 2018.
“Major centralized spot exchanges are facing regulatory headwinds putting investors on alert, cyber hacks and theft continue to be a concern across the crypto markets, highlighting asset holders’ preference for self custody, in line with the popular adage ‘not your keys, not your coins’, and specifically for ether, the enablement of staked ether withdrawals has resulted in investors’ preference to stake ether, instead of passively holding on exchanges,” the report said.
(With inputs from Shikha Singh)
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