Bitcoin Holders Withdraw $700 Million in $BTC off Exchanges in Impressive Vote of Confidence
The amount of Bitcoin ($BTC) being held on cryptocurrency trading platforms has dropped to a four-year low after nearly $700 million worth of the flagship cryptocurrency were withdrawn from trading platforms in a single day.
According to on-chain analytics firm Santiment, on September 30 bitcoin holders moved a whopping 34,723 BTC off of cryptocurrency exchanges “indicating what may be a hint of trader confidence heading into Q4.”
Per the firm, the last time such a large amount of BTC left cryptocurrency exchanges in a single day was on June 17, ahead of a 22% price rise over the following four weeks.
Cryptocurrency traders follow BTC’s supply on exchanges closely, as a reduced supply on trading platforms means that if demand picks up, the cryptocurrency’s price is likely going to quickly move up as well.
In a separate tweet, Santiment noted that Bitcoin’s supply on exchanges has been steadily falling, with now less than 9% of the flagship cryptocurrency’s circulating supply being on trading platforms for the first time since 2018.
A lower supply of BTC on exchanges also reduces the risks of a significant sell-off occurring, as there’s less supply being sold on the market, while demand is unlikely going to dissolve enough to see a significant drop occur.
As CryptoGlobe reported, the host of the InvestAnswers YouTube channel has recently told his over 440,000 subscribers on the video-sharing platform that October is a historically bullish month for BTC, which to him means that the cryptocurrency could trade at $25,000 to $260,000 over the next four weeks.
Some analysts are even more bullish on the cryptocurrency. A former hedge fund manager has estimated that BTC will trade at $12.5 million per coin in a decade after the collapse of the U.S. dollar.
In an interview with Altcoin Daily, Robert Breedlove, CEO, and founder of cryptocurrency investment firm Parallax Digital, said the flagship cryptocurrency’s price will explode until 2031 while the U.S. dollar will crater. The analyst sees the U.S. dollar “hyperinflate to zero” in that time.
It’s worth noting that, after cryptocurrency prices dropped significantly earlier this year some whales started showing signs of capitulation, with on-chain data showing that the amount of bitcoin held by whales has been dropping over the last 11 months as fears of inflation and a financial recession keep on growing.
Per the firm, addresses holding 100 to 10,000 BTC have lowered their percentage of supply held of BTC to a 29-month low amid their distribution of tokens. The last time whales have held onto such a low amount of BTC was in April 2020, during a sell-off triggered by the COVID-19 pandemic.
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