Data study shows that the quantity of Bitcoin on exchanges dropped dramatically in May 2023, suggesting a growing pattern of hodling among investors. Metrics like the Exchange Reserve and the Exchange Reserve USD are considered in this study. According to data compiled by CryptoQuant, there has been a dramatic drop in the quantity of Bitcoin held on exchanges since May 1, 2023. This indicates a significant amount of Bitcoin has been removed from trading platforms during the previous 30 days. The estimated worth of the removed Bitcoin is about $7 billion, using the Exchange Reserve USD measure.
This drop in foreign currency reserves is indicative of a change in investor mood, namely a preference for hoarding rather than selling in big quantities. A drop in the Exchange Reserve of more than 2,132,000 BTC would be an additional confirmation of this trend, as it would indicate a clear preference for collecting Bitcoin at the current price range of roughly $27k.
Daily deposits decrease
The pattern of deposits may also be analyzed for further information. Daily reported deposit transactions have decreased during the last month, falling anywhere from 10,000 to 30,000. This trend of fewer deposits occurring around the time Bitcoin’s price increased in July 2019 is repeated. Traders had a wait-and-see attitude throughout that time, betting on rising prices before May 2020’s halving.
Although the next halving isn’t until March 2024 (almost nine months away), some market watchers believe present circumstances portend a bullish trend. The falling supply on exchanges and historical trends imply a favorable prognosis for Bitcoin in the foreseeable future, although this analysis is based on personal assumptions and interpretations of the available facts. Given the inherent volatility of cryptocurrency markets, each investment choice should be carefully considered in light of the investor’s risk appetite.
