Bitcoin Balance on Exchanges Reducing

[Ucy]

I think It really depends on whether people are withdrawing to "hold"...and really hold, or they are using bitcoin within a Bitcoin economy/ecosystem without selling too much for fiats or other currencies.

[Lordhermes]

I agree with you op for the fact that inflow of bitcoin was going major to exchange in 2017 bringing more liquidity, remember during the period of ICO, almost 95% of the ICO project were listed in exchange thereby there was plenty of bitcoin on exchange for trading, and this incidence is even more than now of later day transaction, traders having the mind of upcoming bull run is saving their bitcoin in preparing of it, in that case it deduces liquidity.
How do you really think that the percentage of hodling bitcoin in personal wallet will not result to the occurrence of bull run?

[proTECH77]

Many people are still holding their coins waiting for what happened in 2018 to happen in this 2020 when the price of bitcoin went higher than never before. Your bitcoin is your bitcoin, you have the right to hold it to when your spirit tell you to release it for market.
I think there are still more bitcoin  supplier in the market than demand which they are few in the market, that got people talking that bitcoin on exchange is reducing in this 2020.

[TheUltraElite]

Withdrawing bitcoins to their wallets does not necessarily mean that they are moving it away from the market. They may possibly opening up OTC deals and also preparing to spend those coins. This could also be an indication that some people have been running low on liquid fiat cash at hand and they need to cope with the crisis currently and thus liquidating these assets.

The second possibity is very likely because for the last few months bitcoin price has been very stable above the 10k USD mark. So you might want to sell some for fiat before holding onto the rest.

[jostorres]

That being said, mind you that exchanges aren't the only means of exchanging Bitcoin, it could also be that more people now exchange their Bitcoins via P2p trade and not on exchanges, and hence withdrawals are still happening.

But, if that was the case why suddenly people starting doing P2P trades. Platforms like localbitcoins are doing great and have increased the number of trades for sure but that does not mean everyone would suddenly jump on such platforms and start doing P2P trades. And actually I have been doing P2P trades since a long time and I can easily tell you that P2P is never a good feeling because it being a manual process is tiring and time consuming so actually I always prefer doing direct trades unless fiat is involved.

I am not really sure about what to make with the chart given in the OP but that might be indeed a sign of market trends changing and a bull run coming more since we are close to the new year now and more people start to hold their coins I guess.

[slapper]

This indicator does show us many things. People tend to hold their bitcoin instead of making any trade on the market and this spot out that many people believe bitcoin will go up in the near future. Well, what are you waiting for right now? This is the best time for you to jump right up a bull train before it even starts dramatically. Dont waste your chance like what you did in 2017-2018.

Having a couple of ethereum in my wallet. Hope that they will soon give me a significant profit in the future. I was ignorant in 2017 while blindly holding my coin without taking any profit. Now, the circumstance has changed. I have become wiser and more experience. I will not let this opportunity slips away

[Chrystora123]

I am not really sure about the accuracy of the data displayed by the site but even if it is true then it shows that the majority of crypto players do not trade but HODL their coins to private wallets.  I myself not very active in trading so why don't I put my coins in an exchange wallet but prefer to keep it in a private wallet which is much safer..

[Hemady17]

There is no accurate data when it comes in predicting the possible price. Specially if it tells about bitcoin which has more volatility compared to stocks and other coins in market. If you believe that it will goes up at the end of year, then hodling is best choice. As of now, bitcoin gradually moves up as it surpass the 11K dollars resistance.

[Febo]

Bitcoin Balance on Exchanges Reducing

I guess proof of keys that happens on 3rd January when Bitcoin was launched in 2009 is early this year. Having coins on an exchange is asking for troubles. When I personalty need to exchange a con i send it to an exchange , swap it fro other coin and then withdraw it. It takes an hour max. They have only 1 hour to somehow fuck it up and waste my coins. Very tiny chance.

[notblox1]

Everyone who has doubt about information I posted I say don't doubt but go and check for yourself on Glassnode website and links I posted.

I guess proof of keys that happens on 3rd January when Bitcoin was launched in 2009 is early this year. Having coins on an exchange is asking for troubles. When I personalty need to exchange a con i send it to an exchange , swap it fro other coin and then withdraw it. It takes an hour max. They have only 1 hour to somehow fuck it up and waste my coins. Very tiny chance.

And you are doing it all right because exchanges are for exchanging coins and not for keeping them.
I prefer to do exact same thing like you.

[jacafbiz]

The amount OF BTC on most exchanges is decreasing as the chart shows and it is showing in the sell side of the market. I think you need to consider the OTC volume also before jumping into conclusion. I read that the OTC trade volume has increased significantly recently and if the big player starts using OTC then this is something to factor in. Most of the big funds and companies are deploying capital into Bitcoin, if they are buying on exchange, they won't leave their BTC on exchanges but move it to their safe wallet.

[Dragonfund]

This still doesn't mean the price cannot drop, I understand the excitement as everyone assume institutional really want to hold Bitcoin for long term, I am really concerned about the big whales when they decide to sell. Early this month, there was a movement of 50btc that was mine 2010,suddenly the market began to crash, if the above analysis is true and verified, such things wouldn't bother traders and holders. I ponder what will happen when large institutional investors begin to move their Btc back to exchange.

[Rengga Jati]

If the Bitcoin amount on exchanges is going lower, does it mean that many people prefer to move their BTC to their personal wallet and hold it?
Well, if this happens, it may have something special there probably. We can't ensure what will happen next, but will it mean another bullrun?
It may not be specified easily for the bullish market soon. But, it means that many more people believe in BTC, believe that it is important to hold BTC because someday, the price will go up significantly and make a boom like what happens previously or probably more than it.  Well, let's see what next

[manfredmann]

Speculation insights could matter but in my own opinion after experience losses in investment I made up my mind not to believe in everyone's speculations because most of it are just HYIP that will going to happen or not. So I should had made my own decision and choice if to invest more or not. This time since bitcoin market is high it is not advisable to invest unless market will going to crash again and that will make bitcoin 3K USD per btc and if it happen high chance that I will invest again a money that I can afford to lose.

[maxreish]

There's a lot of difference from that two charts. Because we are in a situation where in we need to manage well our bitcoin. What i mean was that, this pandemic that hitted us makes some of the investors pull out some of their bitcoin in crypto exchanges. There's  lot of reason why they are withdrawing their bitcoin.
 
 Bitcoin these past few days took a small pump, it is gaining some strength to finally took the pump.

[traderethereum]

There's a lot of difference from that two charts. Because we are in a situation where in we need to manage well our bitcoin. What i mean was that, this pandemic that hitted us makes some of the investors pull out some of their bitcoin in crypto exchanges. There's  lot of reason why they are withdrawing their bitcoin.
 
 Bitcoin these past few days took a small pump, it is gaining some strength to finally took the pump.

Bitcoin still not touch $11,500 and it stays at below $11,500.
But I am sure that bitcoin price will break that price soon.
This pandemic makes people think about making money from many sources, and luckily for people who know about crypto, they can use crypto to make money.
Maybe those people want to hold their bitcoin in their wallets because they concern about the hacking in the exchanges.

The small pump help people to gain some profit for a while, and I think many of them are making some money.
But in a long term, bitcoin will have a big pump like before, and I am sure that pump will be bigger than before.
Although the pump will not happen quickly, we can still use that pump to make a profit.
Maybe the price will increase step by step and not directly jump to the highest price. That can be good for us if we can try to buy low and sell high.

[Salauddin1994]

In the case of every trader it is a good idea to buy at a lower price and sell at a higher price but it is a long wait bitcoin is a type of crypto-currency or virtual currency the price of the coin fluctuates. The demand for bitcoin investments has increased significantly due to the effects of the epidemic but the balance of bitcoin is very good although the exchange rate has declined. Traders are holding on to high prices bitcoin is moving slowly but it will be very profitable for investors.

[shoreno]

 not early and not late but bull run is a bull run and we all want this  . 2017 and some parts of the 2018 are the year where btc grew noticeably , the trade between these times supposed to be verry active than on other years  . im confused if reduced activity is good or bad because if people dont trade actively that means they are holding but active trading is also a sign of a healthy market  .

but most important is that people are in control of their bitcoins.

not your keys not your coins is what they always say so this is a plus point for the people that are now not sending coins to an exchange

[witcher_sense]

Part of the reason why bitcoin balances on centralized exchanges reducing is because bitcoin is being gradually accepted as a potential store of value. Bitcoin started its way, like any other hard money before it, as a commodity or collectible, and now the vast majority of people familiar with bitcoin consider it a good instrument to keep your wealth. But bitcoin is yours only if private keys are in personal possession. Thus, we can conclude that bitcoin is good at storing value, but centralized exchanges are bad at storing bitcoin, they either have been hacked or will be hacked, they cannot be trusted when it comes to your own funds. That is why rational people prefer to withdraw their money from exchanges and keep it on personal wallets.

[Lucius]

I would like to believe that the record low number of BTCs on the crypto exchanges is because investors realized that their crypto assets there are not safe, but as someone already mentioned the outflow started happening when DeFi started coming into focus, so I believe many actually bit into this bait in the true way they bit into ICO&altcoins back in 2017.

On the other hand, we know that crypto exchanges are not very transparent with their data, and the companies that analyze them see only what the exchange allows them to be seen. Maybe that's why some exchanges have started offering an interest option in order to deter users from withdrawing coins to their personal crypto wallets.