There has been much selling by investors due to the fall in bitcoin’s value. This sell-off trend has contributed to the further decline of the digital asset’s prices in recent times. As the bear market persists, however, the number of holders selling off BTC has decreased significantly. This is evident in the decline of coins being sent to central exchanges by addresses.
Sellers Beginning To Cool Off
Incredibly, bitcoin addresses have been increasing in number over the last year. They were sending BTC to centralized platforms to sell their assets. As the sale-offs began to recede, however, it had been in decline for a few weeks.
According to GlassnodeOn Thursday, bitcoin addresses sent to the exchanges fell to their lowest level in 22 months. It was at 4,445.369. However, Friday saw another decline. The number of addresses sending BTC to Exchanges this time was 4,443.202.
Source: BTCUSD on TradingView.com| Source: BTCUSD on TradingView.com
This is far from the nearly 6,000 bitcoin wallets which were sending BTC directly to central exchanges between 2022 and 2022. It used to be that the rise in BTC-to-exchanges transactions was correlated with bitcoin price drops in Q2 2022. But now it is the reverse. The price drop coincides with the decrease in bitcoin price.
How this affects Bitcoin
This data clearly shows that investors have a growing accumulation trend. However, not all metrics point to it. Glassnode recorded the net position change in HODLers on Friday.
Instead of rising as one might expect from an accumulation trend, they are on the decline HODLer net position change continues to decline. Now, it has dropped to 51,997.708. The data shows that even though the market may feel fatigued, this is enough to increase the pressure on the value of digital assets.
It is constantly increasing the amount of active Bitcoin supply. The bitcoin price has reached a record 718,437.728 BTC for the first month. This is slightly higher than the September 11th peak of 717.097.427 BTC but still supports the notion that there are continuing sell-offs.
Bitcoin’s price is also succumbing under the sell pressure. The digital asset is currently trading under $19,000 and doesn’t show any indicators of a significant recovery.
CNBC's featured image and charts by TradingView.com
Follow Best Owie on Twitter for market insights, updates, and the occasional funny tweet…