Analytics chart provided by Santiment data aggregator shows that Bitcoin supplies on crypto exchanges continue to melt, dropping to the 18-month long that was last seen on January 2 this year.
The Santiment team of experts believes that the 18-month low reached by the Bitcoin supply on exchanges reduces chances of any big sell-off in the future and improves the odds of the eventual Bitcoin recovery in the future.
? #Bitcoin is inching close to the then 18-month low of its supply on exchange ratio, which was hit back on Jan 2, 2021. As $BTC continues moving off exchanges during these suppressed prices, it's a promising sign that markets have decreased selloff risk. https://t.co/DQzTx822Py pic.twitter.com/WVP7sfgnty
— Santiment (@santimentfeed) July 24, 2021
In mid-July, Glassnode provided a similar chart of crypto investors withdrawing large amounts of Bitcoin from crypto trading venues, which was read as a sign of a potential price suirge.
Earlier today, the largest cryptocurrency by market cap posted a 4 percent growth and inched closer back to the $34,000 level.
At the time of writing, Bitcoin is changing hands at $33,732 as per the data provided by CoinMarketCap.
Meanwhile, the open interest on Bitcoin futures is seeing a sharp decrease. CIO of Lex Moskovski capital interprets it as the market being in fear and institutional investors being careful in betting on Bitcoin.
Crypto-margined OI is on a sharp decline.
— Lex Moskovski (@mskvsk) July 23, 2021
People prefer using cash and stablecoins as their collateral of choice instead of crypto.
I read it as fear despite CT being relatively calm. pic.twitter.com/lxKlYeSlbV
Alex Dovbnya
Denys Serhiichuk