• Bitcoin supply on exchanges has dropped to the lowest mark since 2017
• This downward trend began in March 2020, when crypto bottomed ahead of the pandemic bull run
• The exodus of Bitcoin from exchanges is likely due to security and transparency concerns, heightened by the collapse of FTX
Bitcoin Supply on Exchanges Lowest Since 2017 Bull Market Peak
The balance of bitcoins on exchanges is now down to 2.27 million – that is the lowest mark since March 2018, a month which saw „God’s Plan“ by Drake being played on the radio over and over again. This mark is even lower when compared to the overall supply. There is currently 11.8% of the Bitcoin supply on exchanges. This is the lowest mark since December 2017, a month which saw Bitcoin breach $20,000 for the first time before crashing back down seven weeks later.
Supply Falling Since March 2020
Crypto fans will remember December 2017 as an incredibly volatile month for cryptocurrency prices. However, this downward trend in Bitcoin exchange balances began much more recently – in March 2020 just as crypto bottomed out ahead of a hugely successful pandemic bull run.
Why Are People Moving Their Coins?
Originally people were pulling their coins from exchanges in order to engage with a vibrant crypto ecosystem offering high volumes and activity as well as plenty of scope for yield farming and DeFi opportunities such as staking and liquidity mining rewards. Nowadays however interest has fallen off but this pattern remains – albeit for different reasons this time around. It appears that people are fleeing exchanges due to increasing fears over security and transparency issues; exacerbated by events such as the collapse of FTX earlier this year which lost customers millions in assets stored with them without their knowledge or consent.
„Not Your Keys Not Your Coins“
This old saying takes on new relevance after seeing one of biggest names around gamble away customer assets without so much as a warning sign – it’s little wonder we’re seeing people take extra caution with where they store their funds nowadays! In light of these happenings one could expect people to be doubly careful when considering where they keep their funds going forwards; simply put not your keys not your coins rings truer than ever before!
Conclusion
To conclude, it appears that there has been an ongoing exodus of Bitcoin from major exchanges in recent months as people look to protect themselves against potential security issues and lapses in transparency across major platforms – something which was thrown into stark relief following FTX’s collapse earlier this year. With keys firmly back under user control, many will hope that similar events don’t occur again anytime soon!
