Bitcoin balance on exchanges hits lowest level since 2018

According to onchain data reported by Glassnode, Bitcoin balance on exchanges is at its lowest level in the past four years. In numbers, the amount is 2.4 million bitcoins, or about 12% of the total supply in circulation – 19,182,837 BTC, at the moment.

In addition to the cryptocurrency’s decline in the past year, other factors may contribute to this scenario. The first of these is Bitcoin’s recent lack of volatility, after all, this is a “spice” that many risk-loving traders look for.

However, the main point of this metric is linked to the sale intent, mainly by long-term investors. After all, for security reasons, it is best to keep your bitcoins under your own management while you do not have to use them.

Bitcoin on exchanges hits lowest level since 2018

After crossing the 3 million bitcoin mark in exchange wallets, this number has only fallen. It even rose after the May 2021 high, but continued the same trend after BTC hit a record price in November last year.

Bitcoin balance of cryptocurrency exchanges hits lowest level in the past 4 years. Source: Glassnode/CryptoSlate.

After analysis, we can believe that investors are less likely to sell their coins while Bitcoin is experiencing more of a major bear market. In addition, the recent lack of volatility may put off even traders who previously sought high rewards that came with high risks.

Another point is the security of the funds. After all, it is safer to keep your cryptocurrencies with you, preventing confiscation and hacks. As for attacks, thankfully these are less common on centralized exchanges, although they have increased in the decentralized finance (DeFi) sector.

Market is still in “extreme fear”

Another statistic points out that Bitcoin investors are still feeling “extreme fear”. That is, they fear that BTC’s decline is not over yet, mainly because they believe the Fed will continue to raise interest rates.

Bitcoin fear and greed index, pointing to “extreme fear”. Source:

While this sounds like a sign to stay away from Bitcoin investments, it can actually mean the opposite. After all, the best time to buy is often when others panic, i.e. when the market is driven more by emotion than reason. Later, the same investors have to come back, lured by greed.

Another cryptocurrency that seems to be in the same pattern is Ethereum, forgotten after its biggest update in history last month, but also a great long-term name as it keeps its inflation in check.

Source: Live Coins