On-chain data provider Santiment cryptocurrency He shared that he has been heavily transferring Bitcoins from their exchanges to their own wallets. in circulation bitcoin Only 10.87% of the amount is on cryptocurrency exchanges.
“As the amount of Bitcoin on the exchanges decreases, the probability of a large sales wave decreases!”
According to Santiment, as the amount of Bitcoin withdrawn from cryptocurrency sales platforms increases, the probability of a large sales wave decreases.
In his tweet, Santiment shared that the amount of BTC held in exchange wallets has decreased sharply after the recent drops in Bitcoin price. According to the analysis company’s data, the rate dropped to 10.87%, the lowest level since December 2018, the period of the cryptocurrency winter.
😮 With another series of dramatic drops, #Bitcoin‘s supply on exchanges is now down to just 10.87%, the lowest percentage seen since December, 2018. Generally, this continued trend of coins moving off of exchanges limits the risk of major sell-offs. 👍 https://t.co/So7mmK1tHg pic.twitter.com/vKwkinUuCl
— Santiment (@santimentfeed) February 12, 2022
According to the company’s analysts, with this huge exit from the stock markets, the possibility of a big sales wave may have decreased. It is reported that it may be easier to move upwards indirectly.
Why Did The BTC Price Drop?
In his previous tweet, Santiment also explained the reasons for the 5% drop in BTC price. BTC, which fell from $ 43,863 to $ 41,928 on Friday, suffered losses due to the possible war between Ukraine and Russia, according to Santiment analysts. The US claims that Russia will soon invade Ukraine.
Stating that increasing volatility affects not only the crypto money market but also all stock markets, Santiment stated that volatility may continue to remain high as the issue continues to affect world markets.
*Not investment advice.