The amount of Ether (ETH) held on cryptocurrency exchanges has reached its lowest level since May 2018, according to blockchain analytics platform Santiment. Currently, only 10.66 million ETH is held on exchanges, while a record-high of 115.88 million ETH is located outside centralized platforms. This suggests a strong shift towards holding ETH outside of exchanges, which is seen as a bullish sign for the asset’s value.
On October 4, around 110,000 ETH (worth over $180 million) was moved off exchanges, marking the largest outflow day since August 21. This further indicates reduced selling pressure and reflects investors’ long-term confidence in ETH.
The situation with Bitcoin (BTC) is quite similar. The supply of BTC on cryptocurrency exchanges has dropped to a 5-year low of 5.73%, as reported by CryptoPotato. This decrease in BTC supply on exchanges also suggests increased confidence and a reduced inclination to sell.
Furthermore, large investors, often referred to as sharks and whales, have been accumulating Bitcoin at an increased pace in recent months. Recent data reveals that these investors control over 66% of the circulating supply of BTC. The top 1% of Bitcoin addresses hold almost 19.3 million coins out of the total 19.5 million in circulation.
This concentration of Bitcoin wealth among a select group of holders highlights the significant influence they have on the market. Their actions and decisions can greatly impact the price and overall sentiment surrounding BTC.
In conclusion, the decreasing supply of both ETH and BTC on cryptocurrency exchanges, coupled with the accumulation of BTC by large investors, indicates a positive sentiment in the market. This trend suggests that investors have a strong belief in the long-term potential of these cryptocurrencies.