The total BTC balance on exchanges continuously decreasing since 2020

[Psynthax]

I keep seeing these things on Twitter which charts detailing the amount of coins on exchanges decreasing. Tye price isn’t going up now though is it, we are 10% down from the ATH. Why isn’t the price going up if available supply is less?

The availability of BTC in exchange decrease slowly so it won't as impactful as many people imagined. But it is definitely good for a long term, the thing regarding why the price is down 10% below ATH is because well as the name ATH itself implies, the market definitely can't sustain to keep btc on ATH price forever, there's always some people who want to dump their bitcoin and make some good profit. The effect of this BTC balance decrease will be starting to show for long term especially for btc long term holders. Hopefully I could still accumulate BTC as much as I can despite the decrease of its availability.

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[Theb]

This has been brought in the past already but I can't say that people are doing what you say them to do so. Without any proof that what they have withdrawn is being stored in hardware wallets we cannot guarantee that that is what they are doing. You must match up sales from both Trezor and Ledger to see if it match up with your theory which would be a hard thing to do so as I don't think they have that data available publicly.

[davis196]

It's great that crypto exchanges are hodling less Bitcoins.
They are the banks of the crypto world and we don't need banks.Bitcoin was created to be an "anti-bank" currency.Most of the altcoins were created with the same purpose.
We need more peer-to-peer crypto trading and more decentralized exchanges.
Less crypto exchanges means less exit scams,less hacks and less horror stories of people,who lost their coins in a crypto exchange.

[rahmatrf331]

The total BTC balance on exchanges continuously decreasing since 2020. This shows that investors are withdrawing and storing their BTC in hardware and cold wallets. They are accumulating BTC for long term. Less BTC on exchanges means less selling pressure.

The same pattern is find after the 2016 halving and we see a long bull run until Dec 2017.

We are still far away from the bull run top. Hold some BTC for long term.

There are rumours that Facebook holding Bitcoin. The news is covered by Fox Business. Facebook may announce the buying or holding if BTC anytime and that will pump BTC. Everyone wants to get their hands on BTC, we are too early. HODL and enjoy the bull run.

https://twitter.com/DocumentingBTC/status/1387444415120265222?s=20

this is the latest reference for the future development of bitcoin. we can predict that. maybe mid-2021 could reach 1 billion bitcoin value.

For investors this form of no pressure to be sold immediately, because the prospects for bitcoin are very good in the future.
big investors really have to be smart to see this, because with the withdrawal of bitcoin to their respective wallet, it means that there will be long-term value to bitcoin.

[wxa7115]

The total BTC balance on exchanges continuously decreasing since 2020. This shows that investors are withdrawing and storing their BTC in hardware and cold wallets. They are accumulating BTC for long term. Less BTC on exchanges means less selling pressure.

The same pattern is find after the 2016 halving and we see a long bull run until Dec 2017.

We are still far away from the bull run top. Hold some BTC for long term.

There are rumours that Facebook holding Bitcoin. The news is covered by Fox Business. Facebook may announce the buying or holding if BTC anytime and that will pump BTC. Everyone wants to get their hands on BTC, we are too early. HODL and enjoy the bull run.

https://twitter.com/DocumentingBTC/status/1387444415120265222?s=20

This has been a known fact for some time but it is nice that it is being brought up to light once again, the new institutional investors getting into bitcoin are not interested in bitcoin as a trading asset, they want to hold it for the long term and this is completely understandable.

They are seeing that governments are still printing money, exercising useless measures to combat the pandemic and in the case of the US government it is going to raise the taxes they need to pay, so they are thinking on ways to protect themselves and what can be better than an asset that cannot be confiscated and that is a store of value and has a hard limit on the number of coins that will ever exist?

[Ridwan Fauzi]

I believe it, since there two possibilities when instutional investor when they are trying to move their asset on the exchange. The first possibility, if they sell their bitcoin then we will see a huge decrease that will happen but we haven't seen a huge decrease until now.

Bitcoin price just make a sideaway market for at least six months until now. And the last possibility is as you have mentioned, they move their holding into hardware or cold wallet because the best way to hold bitcoin is through hardware and cold wallet. We have same prediction, bitcoin still in the bull run market, yeah I guess sooner or later $100.000 will be reached.

[virasog]

The total BTC balance on exchanges continuously decreasing since 2020. This shows that investors are withdrawing and storing their BTC in hardware and cold wallets. They are accumulating BTC for long term. Less BTC on exchanges means less selling pressure.

I have been following this on-chain metric for the last few weeks / months and people prefer to keep their bitcoin out of exchanges. There is a lot of bitcoin outflow from the exchanges which means that people are not willing to sell their bitcoins. The buying pressure will increase at exchanges and therefore bitcoin price will continue to rise.

[slapper]

I do trust the media because they are bought to spread propaganda so as big companies whoever bought them can have huge profit

The bull run must be run for around 1 more year before it reverse to other side. Bitcoin has shown a great persistence and indomitable after a huge correction. That is a sign that investors keep buying bitcoin whenever it has a lower price

[Lucius]

It's great that crypto exchanges are hodling less Bitcoins.

Where do you think all those Bitcoins bought by MicroStrategy, Tesla and similar big companies are? As far as I know, they have no choice but to store them on services like Coinbase Custody, which means that all these coins are not on Coinbase, but they are still there - just moved to another crypto wallet.

Although exit scams happen from time to time when it comes to crypto exchanges, I am of the opinion that crypto users lose their coins far more because they become victims of phishing, fake wallets, various crypto scams (just look at social networks). It is true that we can influence ordinary people to use DEX, or to be in possession of their private keys - but those who now buy the most (big players) have no choice but to use so-called crypto banks.

[lionheart78]

a safe way as well as a concern if the wallet containing Bitcoin is lost, the secret word is not properly guarded. withdrawing Bitcoin from Exchange is a long-term goal. But what's the harm in keeping it on an exchange and not traded, is it at a loss? and if it is lost it will be the responsibility of the exchange, but if it is stored in a hard wallet and is lost, only you are responsible.
so which one is more effective and safer when securing your Bitcoin?

It is always recommended that you keep your Bitcoin in an address that you hold the private key.  Knowledge on how to secure our wallet is everywhere on the internet so learning it isn't expensive.  If we keep our Bitcoin in exchange there are lots of possible risks involve which includes hacking, shutting down of exchange running away with our funds making their exit scam and worst blocking our account that holds our Bitcoin.

[Oceat]

I do trust the media because they are bought to spread propaganda so as big companies whoever bought them can have huge profit

The bull run must be run for around 1 more year before it reverse to other side. Bitcoin has shown a great persistence and indomitable after a huge correction. That is a sign that investors keep buying bitcoin whenever it has a lower price

Yeah, a media that produces a propaganda either black or white that could only benefit to them.
Anyway, it's just a right choice why investors are pulling out their Bitcoin balance on exchanges to put it on a safe hardware wallet than leaving it on any custodial wallet that has a huge chance that they will definitely gonna lose their investment.

So to avoid future loss and future hack just like what happened last 2017 there are lots of hacking incidents and fuds spreading like a wild fire that time that it suddenly ended the Bitcoin bull run just in December IMO.

[sunsilk]

Forget about rumors about Facebook holding bitcoin. That news was put in use by the media for them to have a coverage that has been awaited by its audience.

I've read an analysis that the bull run that we're seeing is just the start and really the comparison to 2016. Which means, the 2017 bull run hasn't arrived yet which might be until 2022 with most of those speculations.

[7788bitcoin]

Forget about rumors about Facebook holding bitcoin. That news was put in use by the media for them to have a coverage that has been awaited by its audience.

We have clarity regrading the news about Facebook holding any cryptocurrency. They never filed anything to SEC which means the news was just rumors to attract investors and audience.

I've read an analysis that the bull run that we're seeing is just the start and really the comparison to 2016. Which means, the 2017 bull run hasn't arrived yet which might be until 2022 with most of those speculations.

What analysis is that which that says that the 2017 bull run will be back in 2022  .The time it took after the halving was much larger in the past but after two rallies huge investors and everyone in the market was aware that the market is going to rally and everyone started to invest much earlier than the halving and so is the reason we had the rally much earlier than the last two times.

[GreatArkansas]

The total BTC balance on exchanges continuously decreasing since 2020. This shows that investors are withdrawing and storing their BTC in hardware and cold wallets. They are accumulating BTC for long term. Less BTC on exchanges means less selling pressure.
(......)

Yep, less selling pressure is one of the reasons we can consider why Bitcoin balances for some exchanges are slowly going down.
We can also consider that whales are somehow manipulating the inflows/outflows of exchanges, so onchain analysis for exchange inflows/outflows will change, but this is for the bitter scenario for being a Bitcoin bullish 

This is already proven from previous bitcoin bull run, exchange inflows slowly going down and exchange outflows is increasing for exchanges, a very bullish scenario for Bitcoin.

[LogitechMouse]

Everyone knows about the risk of holding Bitcoin to an Exchange.

I want to agree this at some points but I don't think that "everyone" really knows the risk of holding Bitcoin into an exchange.
2 possible reasons why some traders especially newbies are just keeping it on an exchange is:

1. They don't know the risk of it.
2. They are just storing it there so that they can sell it immediately when they saw profit that they are comfortable with.
Either all, this is true because there are many institutions and some average Joes who are buying Bitcoin and just keeping it. They see Bitcoin as a store of value thus they are keeping it making the total BTC balance on exchanges decreasing. On the other hand, when the bull market has ended and shifted into the bear market for sure this trend will shift too. For sure there are many Bitcoin holders out there who will sell at least a portion of their Bitcoin holdings.

[lablab03]

The total BTC balance on exchanges continuously decreasing since 2020. This shows that investors are withdrawing and storing their BTC in hardware and cold wallets. They are accumulating BTC for long term. Less BTC on exchanges means less selling pressure.

Of course it's necessary incase what will happen to the exchanges where your btc is stored. As the matter of fact mostly didn't last long and turn into scam exchange, so its better to withdraw and put it into hardwer wallet or anywhere where you can assure it's realy safe... Especially now which is the fee is too high and keep increasing, for me in view there is a possibility some of the exchange will collapse without knowing because amount of holder is gradually decreasing also in on this situation.

[adaseb]

What will be interesting is what will happen when BTC balance on exchanges will start an uptrend. Obviously when that happens it means that a top either occured or will occur however the question is when will that happen with relative balance on exchanges increasing.

Someone did an analysis of this last cycle and I think the balance on exchanges started to increase and it was still far off from the top of $20K. So hence this isn't always an accurate indicator. When BTC hits $100K most likely more people will deposit into exchanges to take profit, but it doesn't mean $100K will be the top.

[ene1980]

I want to agree this at some points but I don't think that "everyone" really knows the risk of holding Bitcoin into an exchange.

Any major investor will go through the history of the market and will very well know that they cannot trust any exchange for holding the coins for the long term. I usually hold the coins only if i am planning to book my profit if not i will not have the confidence to hold them in any exchange and everyone should be aware of the risk as well.

[sunsilk]

Forget about rumors about Facebook holding bitcoin. That news was put in use by the media for them to have a coverage that has been awaited by its audience.

We have clarity regrading the news about Facebook holding any cryptocurrency. They never filed anything to SEC which means the news was just rumors to attract investors and audience.

It's just a rumor and they can hide it or reveal anytime soon. But if the source isn't them, there's no need to be interested more than what they're doing such as the project Libra that they've already started.

I've read an analysis that the bull run that we're seeing is just the start and really the comparison to 2016. Which means, the 2017 bull run hasn't arrived yet which might be until 2022 with most of those speculations.

What analysis is that which that says that the 2017 bull run will be back in 2022  .The time it took after the halving was much larger in the past but after two rallies huge investors and everyone in the market was aware that the market is going to rally and everyone started to invest much earlier than the halving and so is the reason we had the rally much earlier than the last two times.

It's like history repeating itself and the timeframe that has been set which could also happen by the given date. It's not about 2017 is going to happen in 2022, but what happened on 2017 hasn't happened yet and could happen by that said year.

[just_Alice]

Forget about rumors about Facebook holding bitcoin. That news was put in use by the media for them to have a coverage that has been awaited by its audience.

I've read an analysis that the bull run that we're seeing is just the start and really the comparison to 2016. Which means, the 2017 bull run hasn't arrived yet which might be until 2022 with most of those speculations.

I don't think it's wise to compare the market back in 2016 with today's situation. The Bitcoin market cap has increased substantially since then, therefore, the price is less volatile right now. The corrections can take longer, but they will be more lasting, so I don't think we're heading to the top of the bull run same as it was 4 years ago.
If we base our predictions on patterns in the past - then we should expect the price of $300k pretty soon, and I don't think that's happening in the nearest future.