Investors are withdrawing their bitcoins (BTC) from exchanges: why is this a good sign?

The number of bitcoins (BTC) stored on the exchange platforms is at its lowest. And that’s pretty good news for the rest of the bull run, if Glassnode is to be believed …

Investors withdraw their bitcoins (BTC) from exchanges

Figures from the Glassnode data aggregator show that bitcoins stored on exchanges have hit a particularly low threshold. They had not known this level since October 2018, more than two years ago. And as an analysis by Glassnode explains, it gives some indication of investor expectations .

When they want to sell, they tend to keep their bitcoins on exchanges. Conversely, when BTC investors wish to do HODL , they repatriate their bitcoins to more secure spaces, such as “cold” wallets for example. This trend could therefore indicate that investors are ready to keep their bitcoins for the long term , in order to take advantage of a possible lasting rise in price.

A difference from the last bull run

Where this is particularly noticeable is that this was not the case in the last bull run . In 2017, the number of bitcoins stored on exchanges had skyrocketed:

Investors had sent their BTCs to the platforms to be able to sell quickly, which had caused the price to fall at the beginning of 2018. The conclusion to be drawn is therefore rather positive , according to the analysis:

“The withdrawal of BTC from exchanges is therefore a ‚bullish‘ sign for Bitcoin. [This] suggests investors believe the asset still has growth potential, despite the fact that it has recently approached its all-time high. “

It is true that the market sentiment is on the whole rather optimistic. As is often the case in the middle of a bull run, analysts have made their predictions there. A few days ago, the management of Citibank saw a Bitcoin at $ 300,000 before 2022 . What to attract big investors : we learned the same week that the 2nd richest man in Mexico had placed 10% of his cash in Bitcoin (BTC) …