More Bitcoin, Ethereum leave exchanges: What’s going on?

  • Exchanges see less BTC and ETH.
  • Holders continued to increase despite the decline on exchanges.

Bitcoin [BTC] and Ethereum [ETH] are the two largest assets based on their market capitalizations. But recent data indicates that one of them is becoming scarcer. 

Bitcoin and Ethereum on exchanges decline

AMBCrypto’s analysis of the Bitcoin and Ethereum Balance on Exchange metric indicated a decline in the availability of these assets on exchanges.

Interestingly, Ethereum’s balance on exchanges has experienced a more pronounced decrease compared to Bitcoin. 

According to data from Glassnode spanning from March 2023 to the present, the ETH balance on exchanges has plummeted by nearly 6%.

Starting at 16% in March 2023, it has declined to 10.66% as of the latest figures.

Conversely, the BTC balance on exchanges has seen a milder decline of almost 2%, dropping from 13% in March 2023 to approximately 11.85% at press time.

Bitcoin balance on exchange

Source: Glassnode

The dwindling balance of Ethereum on exchanges suggested increasing scarcity of the assets available for trading.

Typically, a decline in balance on exchanges implies that holders are withdrawing their assets from trading platforms.

In the case of Ethereum, it could also indicate that holders are withdrawing and staking their assets for potential returns, further reducing the available supply for trading.

Ethereum balance on exchangeEthereum balance on exchange

Source: Glassnode

Has it affected the number of holders?

Bitcoin and Ethereum’s holders on Santiment revealed a consistent growth trend.

At the time of this assessment, the number of BTC holders had reached almost 54 million, while Ethereum boasted over 121 million holders.

This data suggests that both assets have steadily accrued holders over the past few months, indicating sustained interest and adoption.

Bitcoin and Ethereum number of holdersBitcoin and Ethereum number of holders

Source: Santiment

The increase in the number of holders also aligns with the declining balance of these assets on exchanges, as observed in previous analyses.

This trend suggests that holders are actively withdrawing their assets from exchanges, possibly for long-term holding or other investment strategies.

Such behavior is generally interpreted as a positive sign for the assets, as it reflects confidence in their long-term value and utility.

Bitcoin and Ethereum in profit rises

Analysis of the Bitcoin and Ethereum supply in profit indicated a recent uptrend. As of this writing, the ETH supply in profit was almost 117 million, while BTC registered nearly 18 million.

Read Bitcoin’s [BTC] Price Prediction 2023-24

This upward movement aligned with the recent price rebound observed in both BTC and ETH markets.

As of this writing, ETH was trading at approximately $3,200 with a gain of over 2%, while Bitcoin was priced at around $65,200, also experiencing an increase of almost 2%. 

Next: Worldcoin jumps 20%: Is Bitcoin’s return to $64K the only reason why?

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