Bitcoin’s circulating supply has fallen near the end of 2021, with December representing the lowest month on average in years for Btc supply.
BTC Exchanges: 6.3%
A new study shows that Bitcoin has seen a decline in value since its halving in 2020. from CryptoRankThis is due to a decrease in the availability of Bitcoin exchanges. In the second quarter of 2020 (around Oct), 9.5% of total Bitcoin supply was available on exchanges. The percentage of Bitcoin available on wallet exchanges had fallen to 7.3% in July 2021. In December, only 6.% was available on the exchange wallets. Since the halving, Bitcoin’s falling supply in circulation has been on a downward trajectory, with 1.3 million Bitcoin in circulation.
The largest worldwide crypto platforms, according to CryptoRank’s data, dominate the exchanges where Bitcoin is kept. However, it’s worth noting that Coinbase, while still the most popular cryptocurrency exchange in terms of total Bitcoin held in its wallets, has lost some of its clout throughout the year. CryptoRank reports that Coinbase once held slightly more than 50% of Bitcoin in its wallets. However, this number has fallen to 44.2 percent. Binance holds approximately 25% of Bitcoin exchanges on its exchange while Bitfinex has 14.6 percent.
The announcement comes on the heels of a slew of bullish price indicators that coincide with Bitcoin’s higher price movement. To begin with, the illiquid BTC supply has iced over for the winter, with a monthly supply of 100,000 BTC changing from a “liquid” to a “illiquid” state.
Bitcoin Breaks $51k Again As 20k BTC Flows Out Of Exchanges| Bitcoin Breaks $51k Again As 20k BTC Flows Out Of Exchanges
What is Cold vs. Exchange Wallets?
While many investors choose to retain their Bitcoin on exchanges — a technique known as “hot storage” – there is a risk that turning over the keys to your Bitcoin to an exchange or third-party could leave your Bitcoin vulnerable to attack or hack. Security procedures have been put in place to protect Bitcoin from hackers if it is stored in cold storage. Despite this, Binance CEO Changpeng “CZ” Zhao has indicated that storing keys on an exchange may provide more security guarantee. He pointed out,
“Many hardcore crypto ogs advocate storing your own keys. However, most people can’t secure keys from their own computers today. An authenticated centralized exchange can be trusted #SAFUerFor most people. The numbers speak for themselves.”
This is despite Bitcoiners like Andreas Antonopolous’ best attempts to make “not your keys, not your Bitcoin” a daily BTC mantra.
BTC rising back above $50k. TradingView
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