- CryptoQuant analyst evaluated the “Exchange Deposit Addresses” indicator of BTC and found that the indicator has been declining since the peak of the last BTC cycle.
- According to the data, BTC supply on exchanges has decreased by 6% in the last 90 days. In contrast, the supply of the leading cryptocurrency held outside of exchanges has increased by 1%.
- While the lack of selling pressure can be positive for the price of BTC, the stagnation of investments for a long period of time can make it difficult for the price to grow.
“Exchange Deposit Addresses” in Bitcoin is on a downward trend; Investors show a determined outlook to not sell their Bitcoins.
Bitcoin Investors Hold Their Assets
While the price of Bitcoin is at $31,270, the decrease in Bitcoin deposits on crypto exchanges has emerged as a sign of decreased interest in selling the leading cryptocurrency.
The CryptoQuant analyst evaluated the “Exchange Deposit Addresses” indicator of BTC and found that the indicator has been declining since the peak of the last BTC cycle. This indicator is commonly used to assess the activity and liquidity of assets on exchanges.
When the Exchange Deposit Addresses indicator of an asset increases, it means that more participants in the market are actively depositing and trading the cryptocurrency on exchanges. Conversely, a decrease in the indicator indicates a decrease in interest in trading that particular asset.
The analyst stated:
“The Exchange Deposit Addresses indicator has reached its lowest level, indicating that investors are showing minimal interest in moving their Bitcoin assets to exchanges. This behavior can be interpreted as investors finding the current price suitable for holding and accumulating Bitcoin.”
Investors Determined to Hold BTC
An examination of BTC’s exchange activity confirms the analyst’s view. According to Santiment data, BTC supply on exchanges has decreased by 6% in the last 90 days. In contrast, the supply of the leading cryptocurrency held outside of exchanges has increased by 1%. This indicates that despite significant price fluctuations in the past three months, many individuals remain determined to hold onto their crypto assets.
During this period, BTC whales have increased their holdings. According to Santiment, the number of whales holding between 1 and 1,000,000 BTC has increased by 1%. This growth occurred during significant price fluctuations.
While the lack of selling pressure can be positive for the price of BTC, the stagnation of investments for a long period of time can make it difficult for the price to grow. This was confirmed by looking at the Average Dollar Investment Age (MDIA) indicator of BTC.
According to Sanbase, this criterion primarily represents the average age of all coins/tokens on the blockchain weighted by their purchase price.
While an increase in MDIA is common for HODLing investors, a continuous increase over months often indicates worrisome stagnation in a coin’s network. Such stagnation typically makes it difficult for a coin to break psychological price points.
