The Amount of Bitcoin (BTC) in Exchange Wallets Has Dropped in the Last 2 Years: What Does It Mean?

Cryptocurrency The ongoing bear season in the markets has caused some investors to withdraw completely from the market. Some investors use cryptos in their hands. HODL waiting for the next bull season. Due to this recessionary environment, users’ crypto exchange wallets BTC amount continues to decrease.

According to the data of the crypto analytics site Glassnode, the wallets of crypto money exchanges bitcoin amount fell to the lowest level in the last 2 years.

The most recent decline in the amount of BTC in investors’ crypto exchange wallets came as Bitcoin suffered a hard sell while testing the $25,000 level.

The Rate of BTC Investors Making Losses Increases

Glassnode shared another important data in addition to the decrease in the amount of Bitcoin in exchange wallets. As of August 25, the number of Bitcoin wallets still in loss has reached 18 million, the highest level of the last month.

The reason for the ongoing bear season in cryptocurrencies is mainly based on global economic conditions. Due to increasing inflationary pressures all over the world, countries are going to increase interest rates.

As interest rates increase, investors prefer to move away from risky assets such as cryptocurrencies and evaluate their investments in time deposits.

Will Bitcoin Rise?

Despite the ongoing interest rate hikes, some of the market players have not given up hope on Bitcoin yet.

As the biggest basis for this, we can show that investors continue to keep their cryptocurrencies in their own cold wallets by withdrawing their cryptocurrencies from their exchange wallets.

Because when the supply in the stock markets decreases, the selling pressure in the market decreases, as the supply of Bitcoin, which is potentially ready to be sold, decreases. Although this data alone is not enough to determine the direction, this situation usually triggers the rise in price.