The bitcoin price keeps rising in tandem with the rate at which investors pull their funds off crypto exchanges, according to recent Glassnode analysis.
Currently, 12.9 percent of the bitcoin supply in circulation, or about US$163 billion, is sitting on exchanges, the report says. The trend started in August, when the price of bitcoin began heading north after a midyear slump.
According to the Glassnode analysis, if investors were keeping more of their bitcoin on exchanges it would be because they thought it was overpriced and wanted to be ready to sell. But that doesn’t seem to be the case.
Glassnode’s analysis suggests that daily net withdrawals from exchanges had reached an average of 5,000 BTC. It goes on to say that “despite hovering just below all-time-highs, on-chain activity remains only marginally above bear market levels”.
As More Investors HODL, Expect the Price to Keep Rising
In other words, record-high prices of BTC haven’t prompted many people to sell. Most investors are content to HODL their bitcoin, and Glassnode says it’s a sign that many expect the price to keep climbing.
Just over a month ago, the bitcoin balance on exchanges was at its lowest level since January 2018, while the three-month HODL supply was at an all-time high.
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