Bitcoin
Bitcoin exchange balances fall to five-year low, large outflows from Binance and Coinbase signal long-term holding strategies
Highlights in the chain
DEFINITION: Exchange balances are the total amount of coins held at exchange addresses.
The Bitcoin balance on exchanges continued its downward trend, reaching a significant minimum. According to the latest data, the total balance on exchanges has fallen below 2.3 million BTC, a level not seen since March 2018. Substantial outflows from major exchanges like Binance and Coinbase are primarily driving this shift, signaling a possible change in investor sentiment towards the long term. long-term retention strategies.
Exchange balance: (Source: Glassnode)
Binance, the exchange with the largest Bitcoin reserves, has seen large BTC withdrawals over the last twelve months. Likewise, Coinbase registered the third largest exit of 2024, with almost 16,000 BTC being moved in a single day. This pattern of outflows suggests that large-scale holders, the “whales”, are transferring their assets to private wallets, possibly in anticipation of future price increases.
These trends reflect broader market sentiment, where investors may be preparing for a bullish phase in Bitcoin’s price trajectory, reducing the supply available on exchanges, which could put upward pressure on prices in the future. next.