Negative news: “The number of Bitcoins on exchanges is increasing”

The amount of Bitcoin held by investors on centralized exchange platforms is increasing. Overall, this is negative news because more Bitcoin on exchanges means more Bitcoin available for free sale.

Blockchain analytics platform Glassnode writes that the number of Bitcoins on exchanges increased by 31,382 units (~$1.16 billion) in four weeks.

What does this mean for Bitcoin?

This increase brings the total number of Bitcoins on exchanges to 2.35 million. Chances are that all the Bitcoins that investors send to exchanges are destined to be liquidated (sold).

Why else would you send them to an exchange platform?

It is true that on some exchange platforms you can also get returns on the Bitcoin you lock there. But we’ve seen many platforms in the past where this has gone terribly wrong.

The main question now is whether the rising numbers of Bitcoins on the exchanges will guarantee the end of the digital currency’s recovery. However, for the time being this does not seem to be the case, as Bitcoin once again shows a good lead today.

The price is at $37,186, which means it is 1.53% in the green compared to 24 hours ago.

Why is Bitcoin Rising Today?

Bitcoin’s current rise appears to be largely due to the victory of Argentine pro-Bitcoin candidate Javier Milei.

What makes Milei so interesting for Bitcoin? He has called central banking a “fraud” and plans to abolish it in the United States. The country will not immediately switch to the Bitcoin standard, but appears to be opting for the US dollar first.

In this way, the enormous increase in the number of Bitcoin on exchanges is offset by the good news from Argentina. It will be interesting to see if Milei really has plans for Bitcoin in the country.