With the bitcoin price falling, there has been a lot of investor selling. This sell-off trend has recently contributed to a further decline in digital asset prices. However, as the bear run continues, the amount of BTC being sold by holders has decreased significantly. The drop in the number of addresses sending their coins to centralized exchanges speaks volumes for this.
Sellers begin to cool down
Over the last year, the number of bitcoin addresses that had sent BTC to centralized exchanges, presumably to sell their holdings, had grown incredibly. But it had started falling in recent weeks as sell-offs began to ease.
According to Glassnode, the number of addresses sending bitcoin to exchanges fell to a new 22-month low on Thursday. The number was around 4,445,369. But another straight drop was recorded on Friday. This time, the number of addresses sending BTC to exchanges was 4,443,202.
Bitcoin falls to mid-$18,000 | Source: BTCUSD on TradingView.com
It’s a far cry from the 6,000+ wallets that sent BTC to centralized exchanges in mid-2022. While the increase in wallets sending BTC to exchanges was correlated with the price decline in Q2 2022, the opposite is now the case, with the decline coinciding with the Bitcoin price decline.
What this means for Bitcoin
Of course, data like this suggests that there is a growing accumulation trend among investors, but not all metrics point to it. An example is the HODLer net position change recorded by Glassnode on Friday.
Instead of being expected as in an accumulation trend, the HODLer net position change continues to decrease. It has now made a fresh monthly low of 51,997.708. This shows that even if sell-off fatigue were to occur, it would still be enough to pressure the digital asset’s price.
The amount of active bitcoin supply is constantly increasing. It has now made a fresh one-month high of 718,437.728 BTC. It is slightly up from the previous September 11 high of 717,097.427 BTC, still confirming the fact that the sell-off is ongoing.
The price of Bitcoin is also subject to selling pressure. The digital asset is currently trading below $19,000 and is showing no signs of a significant recovery.
Featured image from CNBC, charts from TradingView.com
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