- BTC supply on exchanges was at an all-time low.
- However, the number of new addresses has remained above 500,000.
Lately, it seems that individuals who own Bitcoin [BTC] opt to keep their holdings as there has been an increase in asset withdrawals from cryptocurrency exchanges. Nevertheless, the Bitcoin network has witnessed a remarkable influx of new addresses on a daily basis. This shift in data patterns could possibly indicate a gradual accumulation phase in preparation for the upcoming incremental market surge.
Read Bitcoin (BTC) Price Prediction 2023-24
Bitcoin outflows are increasing
An examination of Bitcoin’s movement across exchanges revealed a recent trend of increased BTC leaving these platforms. Based on data from the exchange netflow diagram of CryptoQuantnearly 8,000 BTC were withdrawn from these exchanges between August 14 and 15.
Source: CryptoQuant
This phenomenon suggested that holders of BTC were actively claiming ownership of their holdings, potentially reducing BTC availability over time. If this trend continues, it could lead to a scarcity of BTC.
Consequently, the scarcity may contribute to an increase in the price of the asset due to increased demand combined with a limited supply of BTC to meet this increasing demand.
Analysis of the total Bitcoin supply on exchanges
About three months ago, the total amount of Bitcoin on exchanges accounted for about 1.9 million units. However, an examination of the supply on the stock chart by Santiment revealed a significant drop in this figure.
At the time of writing, the amount of BTC available on exchanges was about 1.2 million, representing a reduction of about 700,000 units within this period. In addition, this current volume represented the lowest level of BTC supply on exchanges recorded throughout the year.
Source: Sentiment
This situation suggested that exchange outflows have affected the amount of BTC on these platforms. This phenomenon reinforced the idea of a potential scarcity scenario and an associated rise in prices for the asset.
BTC new addresses keep rising
Among the various price thresholds, Bitcoin holders eagerly hope that the cryptocurrency will be surpassed, the $30,000 mark stands out as particularly important. Over the past few months, BTC has struggled to break through this range and has met stiff resistance.
Despite this protracted struggle, the emergence of numerous new addresses within the network meant that enthusiasm remained undaunted.
Source: Glassnode
According to data from a Glasnode map, the number of new addresses has exceeded 500,000 at the time of writing. This observation highlighted that the network expansion has maintained its momentum even as the price of BTC stagnated.
How much are 1,10,100 BTC worth today
It can be seen from these statistics that many Bitcoin holders exercised patience anticipating an increase in the price of BTC.
At the same time, the influx of new addresses probably indicates a desire to participate in the current price range, with the intention of maximizing profits during the coming bullish phase.