BTC Exchange Reserves Fall To 5 Year Low
As the majority of the cryptocurrency sector remains sideways or downwardly trending, its representative asset – Bitcoin (BTC) – has reached the lowest supply on crypto exchanges in more than five years, indicating that crypto traders and investors are increasingly turning to self-custody.
In particular, the amount of Bitcoin on crypto exchanges has reached 5.84%, the first time since December 2017 that the flagship decentralised finance (DeFi) has fallen below 6%, according to Santiment, a blockchain and social metrics platform, in a tweet on May 9.
According to data from the aggregated derivative exchange data platform Coinglass, there were only 1.89 million BTC on all exchanges on May 11, 2023, a 14.87% decrease from the previous year’s balance of 2.22 million BTC on May 11, 2022.
According to the platform, the trend of moving digital assets away from exchanges and into personal crypto wallets in such large amounts was “a good sign of increased interest in self-custody for traders, and less potentially at risk” of selling back to exchange wallets.
(With inputs from Shikha Singh)
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