Bitcoin (BTC) broke above $48,000 for the first time since spot ETFs were approved by the US Securities and Exchange Commission, signaling a return to bullish sentiment in the market.
On-chain data shows that investors have been actively withdrawing coins from exchanges over the past 30 days. As a result, Bitcoin balances on the largest centralized platforms fell to their lowest levels in six years.
Investors prefer self-storage of BTC
Bitcoin supply on centralized exchanges recently fell to 5.3% of the total circulating supply for the first time since December 2017, according to data from analytics platform Santiment.. Thus, almost 95% of Bitcoins are currently stored in non-custodial wallets.
The chart below shows that CEX supply has been in free fall since January 10th, which is when BTC spot ET was approved.
Source: X/Twitter
Declining supply on centralized trading platforms is generally considered a bullish signal. It may indicate that investors do not intend to sell assets in the near future.
What's happening to the price of Bitcoin
Over the past 24 hours, the price of the main cryptocurrency has risen above $48,000 twice.. At the time of writing, Bitcoin is trading around $48,100.
Source: CoinGecko
The growth is largely due to the actions of miners, who reduced daily sales from more than 800 BTC at the end of 2023 to less than 300 BTC at the beginning of 2024. The Grayscale Bitcoin Trust (GBTC) sell-off has also weakened since late January.. In addition, the rally is fueled by expectations of the halving, which will occur in April this year.
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