With the fall in the price of bitcoin, a lot has been sold by investors. This sell-off trend has contributed to the further decline in digital asset prices in recent times. However, as the bear run continues, there is a marked reduction in the amount of BTC sold by the holders. The drop in the number of addresses sending their coins to centralized exchanges speaks volumes about this.
Sellers are starting to cool down
Over the past year, the number of bitcoin addresses that BTC had sent to centralized exchanges, presumably to sell their holdings, had grown unbelievably. But had started to wane in recent weeks as the sale started to wane.
According to glass node, the number of addresses sending bitcoin to exchanges fell to a new 22-month low on Thursday. The number was around 4,445,369. But on Friday, another consecutive decline was recorded. This time, the number of addresses BTC sent to exchanges was 4,443,202.
Bitcoin falls to mid-$18,000s | Source: BTCUSD on TradingView.com
It’s a far cry from the more than 6,000 wallets that sent BTC to centralized exchanges in mid-2022. While the increase in wallets sending BTC to exchanges was correlated with the price decline in the second quarter of 2022, the opposite is now the case, with the decline coinciding with the decline in bitcoin price.
What this means for Bitcoin?
Of course, data like this points to the fact that there is a growing accumulation trend among investors, but not all metrics point to this. An example is the HODLer net position change recorded by Glassnode on Friday.
Rather than be on the rise, as would be expected in an accumulation trend, HODLer net position change continues to decline. It has now hit a new one-month low of 51,997,708. This shows that even if there were a sell-out fatigue, it is still enough to put pressure on the price of the digital asset.
The amount of active bitcoin supply is always increasing. It has now reached a new one-month high of 718,437,728 BTC. It is up slightly from the previous September 11 high of 717,097,427 BTC, still confirming that the sell-off is ongoing.
The price of Bitcoin is also collapsing under the selling pressure. The digital asset is currently trading below $19,000 and shows no sign of a significant recovery.
Featured image from CNBC, charts from TradingView.com
Follow Dear Owie on Twitter for market insights, updates and the occasional funny tweet…
