Bitcoin supply on exchanges has fallen to the lowest level since 2018

Investors have been withdrawing cryptocurrencies from exchange wallets since November 2022.

This year, their tactics have not changed, and traders continue to send bitcoins for offline storage.

Analysts at Santiment found that the volume of cryptocurrencies on trading floors fell to a five-year low. The last time a similar situation was observed in February 2018.

Lawsuits against Binance and Coinbase have accelerated the outflow of bitcoin from exchange addresses, the report says. Its authors emphasized that the maximum amount of BTC available for sale on centralized exchanges was recorded in March 2020.

In addition, Santiment indicates an increased activity of whales. Wallets controlling at least 1,000 bitcoins have been aggressively buying cryptocurrency over the past few months.

The BTC rate has fallen by about 10% since April, which is what large investors took advantage of. On average, they acquired about 1,000 coins daily.

Whales increased their holdings by 57,578 BTC in two months. They redistribute capital in favor of the largest digital currency, which creates the conditions for its rebound, the company predicts.