It has been an interesting month for Bitcoin and Ethereum, even though the prices have not cooperated all that much. When bearish market trends occur, most people expect the exchange supply to increase. That is not the case these past 30 days, as users withdrew vast sums of BTC and ETH from trading platforms.
Bitcoin (6.1% Of Supply On Exchanges)
Even though acquiring bitcoin has become a lot more straightforward these days, the overall liquidity isn’t that outspoken. With just 6.1% of the BTC supply on significant exchanges, there is sufficient liquidity for most market trades, but big orders will take a very different route. Of course, one would expect the supply on exchanges to rise now that over 90% of the supply is in circulation, but that is not the case.
Even the recent bear market isn’t changing people’s minds. Granted, some users will have panic sold in recent weeks, which always happens after a substantial correction. However, the overall trend shows there was still a strong bitcoin outflow last month, reducing the overall liquidity on trading platforms. Viewbase does not track every trading platform for Bitcoin, but the overall trend serves as a viable indicator.
Most funds were withdrawn from Binance and not seen anywhere else. However, that doesn’t mean the funds is no longer accessible, as it may reside in a new cold storage wallet ViewBase is not aware of. Another strong outflow comes from Coinbase, resulting in over 9,500 BTC leaving the platform last month. Overall, bitcoin saw its exchange supply reduce by over 67,200 BTC for the month, which is a healthy sign.
Ethereum (11.2% of Supply On Exchanges)
When it comes to Ethereum, the trend has been somewhat similar for the past 30 days. There is a substantial outflow of ETH despite a very bearish market trend. Some of the funds have moved from one exchange to the next, but several platforms note a rather substantial decrease in exchange volumes this month. The most significant outflow comes from FTX, which saw over 871,000 ETH leave its platform.
Gemini also has a negative balance of over 159,000 ETH for the month, with OKEx and Huobi seeing balances decrease of over 73,000 ETH each. It appears some traders are stocking up on Ether at these prices, although the purpose of the funds remains unclear. Some of it may end up in the ETH 2.0 staking contract, although there are many things to do with Ether these days.
A very interesting trend becomes apparent with both bitcoin and ethereum noting substantial decreases in exchange supplies. Lower prices seem to spike a higher demand for these assets, but it is good to see more funds withdrawn from these custodial platforms. All enthusiasts need to keep their crypto off exchanges unless they plan to trade it somewhere in the next 24 hours.
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