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The fall in the price of Bitcoin has led to a lot of selling by investors. This selling trend has helped prices of the digital asset continue to fall recently. However, as the market continues to bear, the amount of BTC being sold by holders has decreased significantly. The drop in the number of addresses sending their coins to crypto exchanges speaks volumes about that.
Bitcoin: Sales are declining
Over the past year, there has been an increase in the number of bitcoin addresses sent by BTC to centralized exchanges, presumably to sell their holdings. However, the number has declined in recent weeks as sales have eased.
According to data from Glassnode, the number of addresses sending bitcoin to exchanges fell to a fresh 22-month low on Thursday. The previous number was 4,445,369. However, another consecutive drop was recorded on Friday. This time, the number of addresses sent by BTC to exchanges was 4,443,202.
That’s a far cry from the more than 6,000 wallets sent by BTC to centralized exchanges in mid-2022. While the increase in wallets sent by BTC to exchanges correlated with the price drop in the second quarter of 2022, the opposite is true in question now: the decline is in line with Bitcoin’s price decline.
What does this mean for Bitcoin
Of course, data like this suggests a growing hoarding trend among investors. But: Not all key figures show this. An example is the change in the net position of HODLers recorded by Glassnode on Friday.
Instead of rising as expected in an accumulation trend, the net change in the position of HODL owners continues to fall. It has now made a fresh monthly low of 51,997.708.
This shows that while there may be selling fatigue, it is still enough to put pressure on the price of the digital asset.
The amount of active bitcoin supply is constantly increasing. It has now reached a new monthly high at 718,437.728 BTC. This represents a slight increase from the previous peak on September 11 (717,097.427 BTC). This supports the fact that the sale continues.
The Bitcoin course is also suffering due to the selling pressure. The digital asset is currently trading below $19,000 with no signs of a significant recovery.
Text credit: Newsbtc
Last updated on September 24, 2022
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