Bitcoin Balance on Exchanges Reducing

[Eureka_07]

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Bitcoin on exchanges from 2010 - 2020

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Bitcoin on exchanges from October 2019 - October 2020

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It can mean that there are lots of bitcoin traders that turned to be bitcoin hodlers.
It might help bitcoin to have an increase to it's price because of the reason that lots are hodling bitcoins.
It could also mean there have been huge shift from bitcoin pair trades to altcoin pair trades, I guess maybe due to it's high votality which some (or most?) traders are looking for even though it is too risky.

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[bitgolden]

I guess there is a big part of constitutional investments that make up the difference. Back in the day it was mostly people who had bitcoins and it was mainly the miners who were the big investors, however nowadays it is not like that, there are plenty of places like grayscale and so forth that invest hundreds of millions of dollars, and these are the ones we are aware of, these are not even the ones that we have no idea about, which is why I believe there is even more as well that we do not know that was bought by huge companies.

When you consider all of that, you think you would keep hundreds of millions of dollars worth of bitcoin in an exchange? Of course you wouldn't, and that is why there is less in exchanges since there is more in companies personal wallets.

[Kupid002]

It can mean that there are lots of bitcoin traders that turned to be bitcoin hodlers.
It might help bitcoin to have an increase to it's price because of the reason that lots are hodling bitcoins.
It could also mean there have been huge shift from bitcoin pair trades to altcoin pair trades, I guess maybe due to it's high votality which some (or most?) traders are looking for even though it is too risky.

Or maybe more of the bitcoin investors is now learn their lesson and know that there is a high risk loosing it, when you stored your crypto/bitcon in exchange than having it in your wallet .

We have a lot of scam exchange news hacked etc and that's what I think the main reasons why they prefered to have it in thier own wallet. and use only exchange when they need to convert to other crypto currency or Fiat .

[Ridwan Fauzi]

Hopefully yes, since there are so many incident that crypto exchange is hacked also there is some issues that always happen in the exchange like kucoin now, and personal wallet is a good way to save bitcoin.

If more people save bitcoin as much as he can we will see its price will never go to zero as many people think bitcoin could collapse one day. Yeah, bitcoin still new to be said as an investment place and an investment who has a high risk rather the other investment place.

But, if we hold this situation, I mean we as the user always hold our bitcoin and never sell our bitcoin when the price decreasing we will help bitcoin alwasy stand in any situation and of course there will be many people who will come and believe that bitcoin can be said as an investment place like other.

[exstasie]

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.

We should be able to compare the volume of the larger DeFi contracts to exchange balances to get a better idea of DeFi's effect on the market. I'm guessing DeFi played a role but I think the bigger factor was the March crash. That's why the peak was in February.

For one thing, as price shows, that crash was a massive bout of accumulation. Essentially, weak hands sold to strong hands, who then withdrew their coins from exchanges.

For another thing, because of the magnitude of the crash, a lot of traders got wiped out. Liquidated and/or broke, they left the market. At least temporarily, that has left a vacuum in exchange liquidity.

[Alert31]

It can mean that there are lots of bitcoin traders that turned to be bitcoin hodlers.
It might help bitcoin to have an increase to it's price because of the reason that lots are hodling bitcoins.
It could also mean there have been huge shift from bitcoin pair trades to altcoin pair trades, I guess maybe due to it's high votality which some (or most?) traders are looking for even though it is too risky.

Or maybe more of the bitcoin investors is now learn their lesson and know that there is a high risk loosing it, when you stored your crypto/bitcon in exchange than having it in your wallet .

We have a lot of scam exchange news hacked etc and that's what I think the main reasons why they prefered to have it in thier own wallet. and use only exchange when they need to convert to other crypto currency or Fiat .

I think so! After 10 years of bitcoin ,I think people already learned how to keep their bitcoins and storing bitcoins in exchange is really not secure unlike if they put it into their own wallet with their own password and private key.
Holding bitcoin on their own wallet will lessen the supply in exchange which has the tendency to surge high in value of it. So, if this will continue then I think there is a possibility that the another ATH will come earlier but we still don't know if when but we are still hoping.

[lixer]

I don’t know about this for sure if there is going to be a bull run, but I have seen a similar news around August, and they were also saying that this is a hint that Bitcoin is about to be going for a bull run, but this is October and we are still waiting for a bull run. I don’t really know how this works, but I think not being traded on exchanges means that there will be a released liquidity in Bitcoin, and liquidity is a very important thing in every market.

Of course the news I read then said that when there is a decreased buying and selling of Bitcoin it means that investors are now into HODL because they believe in Bitcoin. I just don’t know all these things.

[semobo]

People who were economically stronger bought Bitcoins when the prices were crashed and basically they will hold their assets in long term and also exchange hacks are too often in the past years so people learned the importance of security while holding their funds.

[Lucius]

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Somehow that DeFi seemed to me to be the most logical reason for people to move their BTC from the exchange - but this reason of yours definitely makes sense, it's amazing how whales profited on that crash, and as always weak hands probably still wonder why they didn't keep their BTC. On the one hand, it is good that less BTC is kept in custodial wallets, but again, it is bad if they end up in various crypto projects that have no future and could end up like the ICO a few years ago.

[Dragonfund]

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.

No one is having skeptism about what you posted, information might be true as stated but this cryptocurrency. People can withdraw any amount they way want and still resale outside the exchange. We have local merchants and retailers, there tons and thousands of transactions that are been conducted on pair to pair desk or OTP.
There are other similar cases that 500k Btc left on exchanges that has surge the market many times, I bet you saw the case of onecoin scam and how they dump there Btc and ethereum on exchanges.

[SquallLeonhart]

Hopefully it will get lesser and lesser, bitcoin wasn't invented so that people could make profit from it and leave it aside. If you buy bitcoin at 100 dollars and it becomes a million dollars each, you all would sell it, I would keep it because I would realize that there must be a reason why bitcoin is a million dollars and it would mean bitcoin could be used to purchase stuff as well, everyone would want a piece, so I wouldn't need fiat anymore at all.

However people are forgetting that we are not at that level anymore, we are lower so they all consider the pricing and profiting as the only thing that matters. I believe as long as people put their money on exchanges and make them richer, we are not going to see bitcoin adoption increase too much to a point where we can spend it everywhere.

[tbterryboy]

Hopefully it will get lesser and lesser, bitcoin wasn't invented so that people could make profit from it and leave it aside. If you buy bitcoin at 100 dollars and it becomes a million dollars each, you all would sell it, I would keep it because I would realize that there must be a reason why bitcoin is a million dollars and it would mean bitcoin could be used to purchase stuff as well, everyone would want a piece, so I wouldn't need fiat anymore at all.

However people are forgetting that we are not at that level anymore, we are lower so they all consider the pricing and profiting as the only thing that matters. I believe as long as people put their money on exchanges and make them richer, we are not going to see bitcoin adoption increase too much to a point where we can spend it everywhere.

Yeah, by assuming that the data is correct I believe there can be another reason why people are not storing their bitcoins on exchanges and that is because keeping coins on exchanges was never safe and now days more awareness is spreading regarding this. I myself used to store my bitcoins on binance and I trust them a lot but I don't use them as wallet anymore so that might be a reason.

But you might be right that people have started to store more bitcoins now and that is the reason less people are trading but I doubt that because even when traders are holding they will always buy sell various other coins simultaneously so there is always activity going on from their side.

[tvplus006]

Yeah, by assuming that the data is correct I believe there can be another reason why people are not storing their bitcoins on exchanges and that is because keeping coins on exchanges was never safe and now days more awareness is spreading regarding this. I myself used to store my bitcoins on binance and I trust them a lot but I don't use them as wallet anymore so that might be a reason...

Cryptocurrency is withdrawn from the exchange by large campaigns, for which getting a profit of 8% per annum is not large compared to their expectations. But I changed my rules for storing BTC and transferred them from my wallet to Binance in order to get a profit by placing them on the deposit.

[2double0]

We should be able to compare the volume of the larger DeFi contracts to exchange balances to get a better idea of DeFi's effect on the market. I'm guessing DeFi played a role but I think the bigger factor was the March crash. That's why the peak was in February.

For one thing, as price shows, that crash was a massive bout of accumulation. Essentially, weak hands sold to strong hands, who then withdrew their coins from exchanges.

For another thing, because of the magnitude of the crash, a lot of traders got wiped out. Liquidated and/or broke, they left the market. At least temporarily, that has left a vacuum in exchange liquidity.

DeFi brought a lot of opportunities for the early investors, those who wisely played with it and timed their trades so well. But it lured the crypto enthusiasts so bad that they could not resist from investing in DeFi projects after seeing huge success of YFI. DeFi is the reason why btc was moved out of exchanges but there were some causes:

• Traders feared the FUD going on at exchanges
• Traders got scared of themselves that they may get lured to invest in yield farming and liquidity pools
• Traders invested a lot in DeFi projects but lost because of the crash
• Whales played well by liquidating many small traders at once and made fortunes by doing that

Btc not being at exchanges is really good because traders are now understanding the values of crypto and are scared about exchange hacks too, better control their btc in their wallets. It also serves as an opportunity for whales to pump back btc prices because sell area is vanishing.

[dothebeats]

Or most purchases at recent times are just from giant companies and institutions and they just transferred those coins into their cold storages. With the surfacing of reports about companies buying thousands of bitcoins in one go, it isn't really a wonder why most coins are disappearing from exchanges. Also, due to the countless hacks that have happened even to some of the most reputed exchanges, it's better to be safe than to be sorry. 2010 vs 2019 data says nothing constructive IMO, and in fact if a bull run is indeed waiting to happen, most coins would be on exchanges ready to get swapped in-between hands for price actions to start.

[sana54210]

Exchanges are not really the only thing that bitcoin price is affected by, people could still sell their coins even at lower level if they do not want to wait for it to go up, which means instead of having a ton of bitcoins not being sold, we could have few bitcoins all being sold on the market, so the price doesn't really get impacted by the amount of bitcoin in the exchanges at all.

I feel like there needs to be a reason for bitcoin to go up or down, it can't be for absolutely nothing at all. Which means if we could have a news that is so major that bitcoin should be going up, we could see a market price movement higher, this news is not like that, we need something more, or it could be something that could be bad for fiat, that usually helps us as well.

[Mihaylovic]

well. this data may be a trick. i believe that trend of bitcoin is depend on mostly few group of people and funds like Grayscale. They can shift their bitcoin from exchanges to their wallet or vice versa for manipulation. not a big deal.

[Dollar_Hunter]

Of course this is good news, with reducing bitcoin balances on exchanges, making me wonder, are investors turning for the long term?
Or is this just a security measure to prevent losses on the exchange ?, like the case of the Kucoin hack ?,
if investors save in personal wallets and in the long term, inevitably!, Bitcoin will go to the moon!

[metenjean]

may i know the reason why holding or transferring bitcoins to personal wallet is a good reason? does it have any good effect to the current price of the bitcoin? i think if many people would hold their coins there would be a low trading volume in the market and this will result on slow change on the market and maybe slow progression of the bitcoin's price.

Reducing from bitcoin balance maybe some investor hold their assets on personal wallet not in exchange wallet like nano ledger and other private wallet, when something bad happen to them they have forget giving data information to other to open and check his bitcoin assets and giving way to bitcoin balance reducing. Although some side is bad but give chance for bitcoin will have little supply on market and have chance to see bitcoin at the future with higher price.

[bits4books]

Withdrawing funds from the exchange to personal wallets is more likely due to concern for their own security - since a lot of exchanges has been hacked or simply blown away in recent years.
I'm not sure that your data supports your theory, but I still insist that such charts are related to the vulnerability of exchanges and the lack of guarantees for the return of lost funds in the event of hacks.