held by long-term investors Bitcoin (BTC) While the amount of tokens has skyrocketed to unprecedented levels, the token supply on cryptocurrency exchanges has continued its downward trend, slumping to its lowest levels in the last 39 weeks, according to an analytics firm.
Blockchain analytics firm Santiment highlighted some of the on-chain metrics developing behind the scenes for Bitcoin as BTC climbed above $42,000.
To be specific, the total supply of Bitcoin on crypto exchanges as of March 17 was 1,946,069.41 BTC, just 10.25 percent of the total supply of the crypto asset. According to data tweeted by on-chain measurement platform Santiment on March 18, this was the lowest amount of BTC on exchanges since the last 3 years.
“Bitcoin’s supply rate sitting on exchanges continues to drop sharply to its lowest level since December 2018. These exchange wallets hold 13.5 percent fewer BTC than just two months ago, which is 1.6 percent less of the total supply.”
Santiment also claims that the recent price surge in BTC was triggered by a series of short sellers who were liquidated as Bitcoin’s value rose, causing a short squeez.
Traders who bet that the price of BTC will go down, have to buy Bitcoin when the price is moving against their expectations. short squeez it occurs.
“Bitcoin’s rise to $42,300 today has been fueled by a series of short-term liquidations. Financing rates remain an excellent resource for determining how traders are placing their bets and whether they are acting on what they say.”
Looking at Ethereum (ETH), Santiment says the second-largest crypto asset by market cap is also showing bullish fundamentals on the on-chain.
Ethereum whales, or assets with at least 1,000 ETH in their wallets, have suddenly revived, according to the firm’s data.
“Ethereum has risen above $2,900 for the first time since March 2, and whale transactions are growing at a rapid pace. Since the news of the war broke out, yesterday was the first day that over $100,000 traded over $7,000 on the ETH network.”
You can check the price movements here.
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, KoinFinans and the author of this content cannot be held responsible for personal investment decisions.