BTC Supply Drying Up, 6.3% Of Total Bitcoin Supply Left On Exchanges
Bitcoin’s circulating supply has fallen near the end of 2021, with December representing the lowest month on average in years for Btc supply.
6.3% Of BTC On Exchanges
The amount of Bitcoin in circulation has been falling since the halving in 2020, according to a new study from CryptoRank, with access to acquire Bitcoin on exchanges also declining. However, by the second half of 2020 (around October), the supply of Bitcoin on exchanges stood for 9.5% of the overall quantity. This percentage had declined to 7.3% of all Bitcoin on wallet exchanges in July 2021, and only 6.% percent of Bitcoin supply was accounted for on exchange wallets in December. Since the halving, Bitcoin’s falling supply in circulation has been on a downward trajectory, with 1.3 million Bitcoin in circulation.
The largest worldwide crypto platforms, according to CryptoRank’s data, dominate the exchanges where Bitcoin is kept. However, it’s worth noting that Coinbase, while still the most popular cryptocurrency exchange in terms of total Bitcoin held in its wallets, has lost some of its clout throughout the year. According to CryptoRank, Coinbase used to account for slightly over 50% of Bitcoin on wallets, but that number has subsequently decreased to 44.2 percent. Binance has approximately 25% of Bitcoin on exchanges held on its exchange, while Bitfinex is on the lowest rung with 14.6 percent of Bitcoin on exchanges held on its exchange.
The announcement comes on the heels of a slew of bullish price indicators that coincide with Bitcoin’s higher price movement. To begin with, the illiquid BTC supply has iced over for the winter, with a monthly supply of 100,000 BTC changing from a “liquid” to a “illiquid” state.
Related article | Bitcoin Breaks $51k Again As 20k BTC Flows Out Of Exchanges
Cold Vs. Exchange Wallets
While many investors choose to retain their Bitcoin on exchanges — a technique known as “hot storage” – there is a risk that turning over the keys to your Bitcoin to an exchange or third-party could leave your Bitcoin vulnerable to attack or hack. If Bitcoin is kept in cold storage or a combination of hot and cold storage, security procedures are in place to keep it as safe as possible from hacking. Despite this, Binance CEO Changpeng “CZ” Zhao has indicated that storing keys on an exchange may provide more security guarantee. He noted,
“Many hardcore crypto ogs advocate storing your own keys. But the truth is, today most people are not able to secure a key even from themselves (losing it). A trusted centralized exchange is #SAFUer for most people. The numbers speak for themselves.”
This is despite Bitcoiners like Andreas Antonopolous’ best attempts to make “not your keys, not your Bitcoin” a daily BTC mantra.
BTC rising back above $50k. Souce: TradingView
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Featured image from Unsplash.com, charts from TradingView.com