Bitcoin, Ethereum Exchange Balances Hit Lowest Level Since 2020

Bitcoin (BTC) and Ethereum (ETH) balances on centralized exchanges have plunged to a four-year low, according to Glassnode data, reflecting investors' increasing preference to hold their assets amid a bullish market sentiment. BTC reserves dipped below 2.3 million coins, valued at approximately $160 billion, while ETH holdings dropped to under 16 million, totaling less than $59 billion.



Factors Behind the Decline in Exchange Balances



The decrease in Bitcoin and Ethereum exchange reserves has been persistent since mid-2020. Glassnode's data indicates that users have consistently withdrawn assets from exchanges, a trend that continued through various market events, including the 2021 bull run, the 2022 Terra-FTX collapse, and even the approval of spot BTC ETFs.



This prolonged reduction highlights a growing long-term bullish


First found on: Cryptonews from Coinatory