Even though the Bitcoin (BTC) price has dropped by $ 10,000 in a week, the cryptocurrency’s “supply crisis” is more than ever. BTC reserves on exchanges dropped to an all-time low, according to on-chain monitoring source Glassnode data.
Everyone wants BTC
BTC reserves on exchanges have declined sharply in recent months and continue to decline despite the fluctuating price action. It seems that long-term investors want to hide their assets by saying “hodl” rather than taking profits even at all-time highs of over $ 60,000.
BTC deposits on Coinbase, the largest US exchange in terms of volume, have dropped by 150,000 BTC since January. At the time of the publication of the news, this amount was approximately 8 billion dollars.
Coinbase, which is preferred by large-scale institutional buyers, reveals that the appetite for Bitcoin has never stopped. As reported by Cointelegraph, BTC deposits are moved to cold wallets.
Statistician Willy Woo made his in the statement“I think that the US institutions and those who invested large amounts of money took over the current money from weak hands and switched to the ‘HODL’ position to protect against inflation,” he said.
“The BTC supply on the Coinbase exchange falling down the cliff indicates that the US has increased its institutional purchases.”
Woo argued that these “strong” hands took over the supply released at every price correction last year, causing a “wild boom”.