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Investors are withdrawing their Bitcoins (BTCs) from the exchanges: why is this a good sign?

The number of Bitcoins (BTCs) stored on exchange platforms is at its lowest.

And that’s rather good news for the rest of the bull run, if Glassnode is to be believed?
Investors are withdrawing their Bitcoins (BTCs) from the exchanges: why is this a good sign?
Investors are withdrawing their Bitcoins (BTCs) from the exchanges.

Figures from the Glassnode data aggregator show that the Bitcoin Evolution stored on the exchanges have reached a particularly low threshold. They had not been at this level since October 2018, more than two years ago. And as an analysis by Glassnode explains, this gives some indication of investor expectations.

Bitcoins stored on exchanges in 2020 BTC

When they want to sell, they tend to keep their Bitcoins on exchanges. Conversely, when BTC investors want to do HODL, they repatriate their Bitcoins to more secure spaces, such as „cold“ portfolios for example. This trend could therefore indicate that investors are willing to hold their Bitcoins for the long term, in order to take advantage of a possible sustainable rise in price.

Where this is particularly notable is that this was not the case during the last bull run. By 2017, the number of bitcoins stored on exchanges had soared:

Investors had sent their BTCs to the platforms to be able to sell quickly, which caused the price to drop in early 2018. The conclusion to be drawn is therefore rather positive, according to the analysis :

„The withdrawal of BTCs from the exchanges is therefore a „bullish“ sign for Bitcoin. This] suggests that investors believe that the asset still has growth potential, despite the fact that it has recently approached its all-time high. »

It is true that the market sentiment is on the whole rather optimistic. As is often the case in the midst of a bull run, analysts have gone for their predictions. A few days ago, Citibank management saw a $300,000 Bitcoin before 2022. Enough to attract big investors: we learned the same week that the 2nd richest man in Mexico had invested 10% of his liquid assets in Bitcoin (BTC)…