Bitcoin exchanges are buying fewer bitcoins than at any point since early 2018, new data shows.
On-chain analysis company glass node Confirmed that foreign exchange reserves are at a 5-year low since February 2023.
‘Wild Data’ Shows Bitcoin Supply Matures
The latest data reflects the determination of bitcoin holders, as bitcoin balances on major exchanges are in a “depressed” state.
As of Feb. 27, the latest date for which data is available, platforms tracked by Glassnode held a total of 2,272,798 BTC.
In March 2018, the previous figure was very low, and in March 2020, the current all-time high of 3,202,326 BTC was reached.
FX reserves began to decline after the COVID-19 inter-market crash and accelerated during the 2022 bear market, down 29% today.
Exchange Bitcoin Balance | Source: Glassnode
Meanwhile, the impressive numbers don’t stop there.
according to Record According to William Clemente, co-founder of Bitcoin-focused research firm Reflexivity, the lows in exchange balances suggest they currently hold less BTC than the oldest holder addresses.
“There are now more bitcoins that haven’t moved in at least 10 years than are on exchanges. Crazy numbers,” he commented on Feb. 2.
Glassnode data also confirms that the total amount of BTC that has been inactive for 10 years or more is 2,645,956 BTC — 16% more than the total balance on exchanges.
The last active BTC supply chart was over 10 years ago | Source: William Clement
No panic selling right now
Holders are reportedly strengthening their resilience in 2023 after last year’s brutal bear market.
Even with higher BTC price action, they continue to hold, with limited sales and increased exposure.
The trend shows little sign of reversing at current levels, with the change in the aggregate net position of holders hitting a four-month high later in the week.
Bitcoin Hodler net position change chart | Source: Glassnode
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As reported by Cointelegraph
