Bitcoin investors are holding their coins again
Knowing how much Bitcoin is held on the exchanges can tell us a lot about the current state of the market, as well as giving us insight into what Bitcoin investors are thinking. If Bitcoin is drifting out of exchanges in mass, it tends to mean that investors are saving their assets for the long term, rather than looking to trade for short-term gains.
“The data clearly shows an asset that is in high demand and appears to have investor confidence, which further implies that the resale of the newly acquired Bitcoin is not being considered in the short term,” Jason Deane, Bitcoin analyst at Quantum Economics, he told Decrypt.
Between February 23 and March 2, there was a 2% drop in Bitcoin held on the exchanges. This corresponds to 52,900 Bitcoins (US $ 2.7 billion) being removed from the exchanges. This continues a downward trend of one year, as more Bitcoins continue to be drained from the exchanges for long-term storage.