Exchange Supply Ratio of BTC Decreases

Friday, 24/12/2021 | 12:27 GMT by Bilal Jafar
  • Digital exchanges now hold only 6.2% of BTC’s circulating supply.
  • Coinbase holds the largest BTC supply.
bitcoin

Bitcoin’s exchange supply ratio has witnessed a consistent decline since the start of 2021. Large crypto addresses have moved the digital assets to cold storage and unknown wallets during the last few months. As a result, leading digital exchanges now hold only 6.2% of the total circulating supply of BTC.

The data released by CryptoRank shows that crypto trading platforms now have a total of 1.3 million BTC. In contrast, Bitcoin’s total circulating supply currently stands at around 18.9 million. BTC’s shrinking exchange supply ratio has played an important role in its price growth in 2021. Limited available supply and huge demand pushed the price to an all-time high of nearly $69,000 in November 2021.

Among all crypto exchanges, Coinbase holds the largest BTC supply. According to CryptoRank, the digital asset trading platform has more than 580K coins, followed by Binance and Bitfinex. Digital exchanges OKEx, Bitflyer and Bittrex Exchange also hold substantial amounts of BTC but nearly all exchanges have seen consistent outflows in 2021.

Short-Term Bitcoin Holders

Due to the recent price volatility, short-term holders of the crypto asset have suffered significant losses. However, BTC has witnessed some decent gains this week and reached $51,000 for the first time in nearly two weeks.

“Presently, Short-Term Holders finds themselves in aggregate loss, though the pace of decline has slowed along with the price. While these coins continue to churn among different hands, their lifespans stay young and they remain members of Short-Term Holder Supply,” Glassnode noted.

“The rotation of coins among newer owners can also be seen in the rate of change of Short-Term Holder Realized Price. As owners of the youngest supply, their cost basis is more responsive to price than their Long-Term Holder cousins. Interpretation of the costs basis for each cohort is nuanced and different,” the crypto platform added.

Bitcoin’s exchange supply ratio has witnessed a consistent decline since the start of 2021. Large crypto addresses have moved the digital assets to cold storage and unknown wallets during the last few months. As a result, leading digital exchanges now hold only 6.2% of the total circulating supply of BTC.

The data released by CryptoRank shows that crypto trading platforms now have a total of 1.3 million BTC. In contrast, Bitcoin’s total circulating supply currently stands at around 18.9 million. BTC’s shrinking exchange supply ratio has played an important role in its price growth in 2021. Limited available supply and huge demand pushed the price to an all-time high of nearly $69,000 in November 2021.

Among all crypto exchanges, Coinbase holds the largest BTC supply. According to CryptoRank, the digital asset trading platform has more than 580K coins, followed by Binance and Bitfinex. Digital exchanges OKEx, Bitflyer and Bittrex Exchange also hold substantial amounts of BTC but nearly all exchanges have seen consistent outflows in 2021.

Short-Term Bitcoin Holders

Due to the recent price volatility, short-term holders of the crypto asset have suffered significant losses. However, BTC has witnessed some decent gains this week and reached $51,000 for the first time in nearly two weeks.

“Presently, Short-Term Holders finds themselves in aggregate loss, though the pace of decline has slowed along with the price. While these coins continue to churn among different hands, their lifespans stay young and they remain members of Short-Term Holder Supply,” Glassnode noted.

“The rotation of coins among newer owners can also be seen in the rate of change of Short-Term Holder Realized Price. As owners of the youngest supply, their cost basis is more responsive to price than their Long-Term Holder cousins. Interpretation of the costs basis for each cohort is nuanced and different,” the crypto platform added.

About the Author: Bilal Jafar
Bilal Jafar
  • 2440 Articles
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About the Author: Bilal Jafar
Bilal Jafar holds an MBA in Finance. In a professional career of more than 8 years, Jafar covered the evolution of FX, Cryptocurrencies, and Fintech. He started his career as a financial markets analyst and worked in different positions in the global media sector. Jafar writes about diverse topics within FX, Crypto, and the financial technology market.
  • 2440 Articles
  • 71 Followers

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