Bitcoin held on exchanges has continuously decreased following the COVID-19 crisis, according to the latest analysis by Glassnode.
In fact, the supply on exchanges has decreased by 11.7% to 2.27 million BTC, marking the lowest level since December 21, 2017.
Such a trend is often considered bullish for underlying assets, implying a potential price increase.
Further validating this trend is the decreasing “Exchange Whale Ratio.” This indicator is calculated by dividing the total number of 10 Bitcoin deposits onto exchanges by the total amount of Bitcoin deposited onto exchanges.
According to CryptoQuant data, the selling pressure in the market may be decreasing now due to the low value of the “Exchange Whale Ratio” indicator, which suggests that whales are accumulating rather than selling significantly compared to the rest of the market. CryptoQuant also added that the current market conditions resemble the bullish cycle of 2019.
The recent increase in the price of Bitcoin is attributed to the world’s largest asset manager, BlackRock, filing an application with the SEC to register a Bitcoin ETF for immediate trading.
BlackRock’s move has further encouraged two US asset managers, WisdomTree and Invesco, to file applications for new ETFs last week.