The Bitcoin ecosystem is witnessing significant shifts in the movement and storage of its coins.
Glassnode, a prominent crypto analytics firm, reported that the balance of Bitcoin on exchanges has plummeted to a 5-year low of 2.27 million BTC.
To put this into context, the previous record was observed just a day earlier, on Aug. 22, when exchange balances touched 2,27 BTC.
These dipping numbers hint at an increased preference by Bitcoin holders to store their assets outside of exchanges, possibly in private wallets or cold storage.
In tandem with the dropping exchange reserves, other metrics from Glassnode also show intriguing patterns.
The amount of Bitcoin supply that was last active between six to 12 months ago reached a one-month low, sitting at 1.87 million BTC.
This subtle decline suggests that a segment of Bitcoin holders may be adopting a more long-term holding strategy.
Moreover, the "supply in profit" metric has also witnessed a sharp decrease, hitting a seven-month low. This suggests that a vast proportion of Bitcoin holders are currently not realizing their profits, further cementing the notion of increased "HODLing" behavior in the community.
Yet, it's not a bleak landscape for the world's premier cryptocurrency. After suffering the biggest dip since the FTX collapse in November 2021, Bitcoin is showing early indicators of a potential revival. Bitcoin has climbed from a crucial support level of $24.8k and is currently trading around $26,608. With oversold indicators becoming evident, this could be an opportune moment for short-term gains