Investors are actively withdrawing bitcoins from cryptocurrency exchanges. According to the analytical platform Glassnode, the exchange balance of BTC for the last 12 months decreased by about 20%.
#Bitcoin Balance on Exchanges taking another dive pic.twitter.com/F20tohfXsu
— William Clemente III (@WClementeIII) March 7, 2021
Moreover, traders prefer to withdraw cryptocurrency from trading floors, despite the recent market drop. More and more investors are trying to send coins to offline or so-called “cold” wallets.
This strategy of players leads to the emergence of a deficit in the supply of bitcoin. Researchers from the Glassnode team also found that BTC holders remained profitable even amid the February pullback, which resulted in the Bitcoin price dropping below $ 44,000.
Bitcoin demand is also growing in the DeFi ecosystem. Accordingly, part of the BTC coins will go to decentralized exchanges (DEX), which will inevitably provoke a shortage of the largest cryptocurrency on centralized platforms, analysts say.
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
