The amount of bitcoin (BTC) stored in exchange wallets has fallen to its lowest level in two and a half years.
This was primarily driven by the increase in institutional purchases and offline storage.
There seems to be a shift in focus towards decentralized exchanges (DEX)
Blockchain analytics firm Glassnode has revealed that the amount of BTC stored in exchange wallets is now limited, to the lowest for the first time in two and a half years.
Nearly 18,500 bitcoins (BTC) worth $ 625 million have left the exchanges in the past week. The price of bitcoin had jumped more than 3.5% at the time of publication and now stands at almost $ 37,000, showing global adoption of buying Bitcoin.
Combined with a significant liquidity crunch currently seen in cryptocurrency exchanges, growing demand, and the expected resolution of a long consolidation, it may be time for another surge in The News Spy.
Bitcoin purchase: growing institutional participation
According to the analysis, the amount of BTC stored on exchanges started drastically decreasing as recently as April 2020. This happened at the height of the Covid-19 pandemic and the global economic recession.
In its efforts to strengthen the US financial system, the Federal Reserve (Fed) decided to cut interest rates considerably and keep the printing press running. This has encouraged individual investors and institutions to use bitcoin as a way to hedge against possible inflation risks. Therefore, large holders are likely to store their bitcoins offline.
As reported by Bitcointreasuries.org , over 1.2 million BTC is owned by private and publicly traded companies, with Grayscale holding over 600,000 BTC ($ 26.4 billion) or over 4.1% of all bitcoins in circulation.
The institutional wave continues as business intelligence provider MicroStrategy dramatically increased its bitcoin stash by purchasing an additional 295 assets for $ 10 million in cash.
MicroStrategy has purchased approximately 295 bitcoins for $10.0 million in cash, at an average price of ~ $33,808 per #bitcoin. We now #hodl ~ 71,079 bitcoins acquired for $1.145 billion at average price of ~ $16,109 per bitcoin.https://t.co/lmj3QCgKbw