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Bitcoin Exchange Supply Sees 3.1% Increase, What Does This Mean?

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On-chain data shows the Bitcoin exchange supply has registered an increase of 3.1% during the past two weeks. Here’s what this could mean.

Bitcoin Supply On Exchanges Has Been Going Up Recently

According to data from the on-chain analytics firm Santiment, exchanges have recently received significant BTC deposits. The “supply on exchanges” refers to the percentage of the total circulating Bitcoin supply currently sitting in the wallets of all centralized exchanges.

When this metric’s value goes up, the investors are depositing a net number of coins to these platforms. Generally, one of the main reasons why holders would choose to transfer their coins to exchanges from their self-custodial wallets is for selling-related purposes.

Due to this reason, whenever the indicator’s value trends up, it can be a potential sign that the market is gearing up for a selloff, which can naturally be bearish for the price.

On the other hand, lowering the metric values implies that a net amount of the supply is leaving these platforms right now, which may suggest that the investors are accumulating. This reduced possibility of selling taking place can be bullish for the price in the long term.

Now, here is a chart that shows the trend in the Bitcoin supply on exchanges over the past few months:

The value of the metric seems to have been going up in recent days | Source: Santiment on X

As displayed in the above graph, the Bitcoin supply on exchanges had been constantly declining during the past few months, but things have recently changed for the indicator.

During the past couple of weeks, the metric has reversed its trend and has observed a rise of 3.1%. This bi-weekly increase in the supply on exchanges is the highest observed since early March.

Many of these deposits had come in the leadup to and during the Go to Source to See Full Article
Author: Hououin Kyouma

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