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Bitcoin Exchange Supply Drops to Lowest Since 2017 as Investors Shift to Self-Custody

Amidst the recent surge in Bitcoin’s prominence within the market, Santiment, a behavioral analytics platform for cryptocurrencies, has made a significant revelation. They declared that the total supply of Bitcoin across exchanges has plummeted to 5.38%, marking the lowest level since December 2017.

This decline in Bitcoin held on exchange platforms has caught the attention of industry analysts, indicating a substantial migration of the digital asset into self-custody. Santiment attributes this trend to the growing inclination of investors towards holding onto their Bitcoin instead of leaving them on exchanges.

The general consensus within the cryptocurrency community is that the decreasing presence of BTC on exchanges signifies a strong desire among investors to retain control and ownership of their assets, possibly as a hedge against market volatility.

Source: Santiment

“The diminishing supply of BTC on exchange platforms underscores a prevailing trend among investors who are opting to secure and manage their own Bitcoin holdings,” stated a representative from Santiment.

The 5.38% overall reduction in Bitcoin supply across exchanges has been emphatically branded by Santiment as a level not witnessed since the peak of the crypto market frenzy in December 2017.

In a further revelation, Santiment disclosed that the ten largest Tether exchange wallets currently harbor a staggering $15.23 billion, representing the highest level since June 2022. This surge in Tether holdings within these wallets suggests an increased buying power held by exchanges, potentially hinting at their readiness to accommodate market demands.

Upon analyzing this decline in BTC supply, industry experts have speculated that this could act as a catalyst for a potential future price surge. This assumption is based on historical trends where reduced availability of Bitcoin on exchanges has often preceded periods of significant price appreciation.

Furthermore, analysts have highlighted the discrepancy between the quantities of Tether and Bitcoin present on exchange platforms. This divergence might indicate the commencement of an upward trend in the cryptocurrency market, reflecting a shift in investor behavior and trading patterns.

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