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Number of addresses sending Bitcoin to exchanges has reached a 1-year low

Number of addresses sending Bitcoin to exchanges has reached a 1-year low

As Bitcoin struggles to trade above $50,000 amid heightened volatility, the number of investors transferring the asset to exchanges appears to have declined. As of Dec. 12, the number of bitcoin addresses sending BTC to exchanges hit a new 13-month low –4,197.9 on the seven-day moving average (7-day MA), Glassnode data shows.

Moreover, a metric that tracks the number of unique addresses that appear as a sender in transactions that send funds to exchanges recorded a recent 13-month low of 4,202.91 on Nov. 24, 2021. The number of addresses sending Bitcoin to exchanges indicates that investors are potentially choosing to hold the asset in anticipation of a new rally. The top-ranked cryptocurrency has been subject to severe volatility in recent weeks, falling below the critical $60,000 mark and eventually to $50,000. The fall in Bitcoin has also affected the entire market, and other assets have shown negative gains. Consequently, it can also be assumed that holders were unwilling to transfer the asset to exchanges as they would likely suffer losses when exchanging their BTC for other assets. This also correlates with Bitcoin's growing status as a store of value and a hedge against rising inflationary concerns. It is worth noting that typically investors who keep their Bitcoin in cold wallets tend to move the asset to cryptocurrency trading platforms to profit from high price movements. However, continued volatility has led to losses for investors.

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