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Bitcoin Holders Get Greedy: Amount of BTC Stored on Exchanges is ‘Plummeting’

The amount of Bitcoin stored on exchanges is ‘continuously plummeting’, according to a new report from CoinTelegraph.

Indeed, since Crypto’s ‘Black Friday’ in March, when the price of Bitcoin swiftly fell from over $9,000 to nearly $4,000, data from Glassnode shows that the amount of Bitcoin that traders are storing in cryptocurrency exchange accounts has fallen to the tune of $2.85 billion (from 2,950,000 BTC to 2,700,000 BTC.)

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What is causing the decline? Analysts say that there are several factors at play: firstly, decreased trust in cryptocurrency exchanges, after all, this month has seen both the indictment of the four BitMEX co-founders as well as the arrest of OKEx founder Star Xu.

More importantly, the decrease in the amount of BTC on exchanges could be indicative of a decline in the number of BTC holders that are willing to sell their coins.

“Bitcoin Accumulation Has Been on a Constant Upwards Trend for Months.”

Indeed, Glassnode said a large part of the Bitcoin supply is stored in so-called ‘accumulation addresses’, which are digital wallets that BTC has been moved into and never out of: “Bitcoin accumulation has been on a constant upwards trend for months. 2.6M $BTC (14% of supply) are currently held in accumulation addresses. Accumulation addresses are defined as addresses that have at least 2 incoming txs and have never spent BTC.”

Crypto Twitter commentator @Oddgems also wrote on Saturday that “more and more #Bitcoin getting out from exchanges and most probably being transferred to non-custodial wallets. This suggests slightly lower liquidity and lower selling pressure going forward.”

Historically speaking, periods of low volatility tend to precede substantial price movements. Earlier this year, David Waslen, co-founder and chief executive of HedgeTrade, told Finance Magnates that “generally speaking, a drawn-out period of low-volatility price consolidation will lead to a huge move on either side.”

“The longer the consolidation persists, the more violent the breakout or breakdown will end up being,” he explained.

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