Bitcoin Exchange Supply Ratio Hits 5-Year Low
The exchange supply ratio of Bitcoin has dropped to 0.13, marking its lowest level since February 2018. This ratio measures the percentage of Bitcoin held on exchanges compared to the total circulating supply. At the beginning of 2022, the ratio was at 0.18, and it stood at 0.158 at the start of this year.
Implications of Decreasing Exchange Supply Ratio
- More Bitcoin is being moved off exchanges into personal wallets or cold storage.
- Investors may be adopting long-term holding strategies.
- This shift reduces the immediate availability of Bitcoin for trading or selling.
The current low exchange supply ratio could indicate a decrease in selling pressure and liquid supply. These factors may potentially impact the price movements of Bitcoin in the near future.
The information provided in this article was originally published on CryptoSlate.