Hello,
The user @Jethroe111 posted the following chart in his X profile:
What this chart is telling us is that a lot of Bitcoin has moved from the exchanges to cold wallets. But, how much is "a lot"? We can see in the chart that since the end of 2022 until now almost 1,000,000 Bitcoin has moved out of the exchanges. And this, obviously has it's effects on price.
Another thing that we can see in the chart is that we never in the history of Bitcoin had 1 million coins removed from the exchanges in one year. It coincides with the Bitcoin ETF launch. Since then, coins have been moving out of the exchanges and it doesn't look it will stop anytime soon.
Despite the price appreciation since 2024, more Bitcoin has been sucked out of the exchanges.
What is the expected effect?
Well, the expected effect is clear, if there is less and less Bitcoin on the exchanges price normally appreciates.
I would love to have just 1 million Bitcoin on exchanges, and all the world competing to get a piece of the pie. We will eventually get there, but it could happen in the next cycle.
If we keep with this trend we could see a liquidity squeeze to the upside, specially if the demand grows like all the other cycles.
Take a look at the charts, the charts don't lie.
Have a great day.
Posted Using INLEO
