According to on-chain data, Bitcoin (BTC) holders are increasing their accumulation of BTC, as exchange holdings decrease to yearly lows and the percentage of inactive BTC supply reaches all-time highs. This trend suggests that more investors are holding onto their Bitcoin for longer periods of time.
Glassnode’s Bitcoin supply last active chart reveals that the amount of inactive BTC, which has not been moved from an address for one, three, and five years, has been at its highest levels since July 2023. CoinMarketCap’s Bitcoin analytics also support this observation, as it tracks wallet addresses based on the duration of BTC holding. Approximately 69% or 36.8 million addresses have held BTC for over a year.
In addition, CryptoQuant charts show a steady decline in Bitcoin outflows from exchanges since July 2021, with just over 2 million BTC remaining on exchanges. This data suggests that investors are moving their Bitcoin off exchanges into personal wallets for long-term holding.
The CoinGlass Bitcoin on exchanges tracker provides further insights into the circulating BTC held by major centralized exchanges. Binance holds the largest amount with 543,281 BTC, but the exchange has experienced significant outflows in the past 30 days, with 21,645 BTC being withdrawn. Coinbase Pro comes in second with a BTC balance of 435,530, and it has also seen 3,612 BTC withdrawn in the last month.
Interestingly, OKX is the only exchange in the top 10 that recorded a significant inflow of Bitcoin in the last 30 days, with 4,630 BTC being moved onto the platform. This suggests that some investors are still actively trading Bitcoin and depositing it onto OKX.
Market commentators and analysts have made predictions about the potential value of Bitcoin, especially with the highly-anticipated mining reward halving scheduled for 2024. Their optimistic outlook aligns with the current trends of Bitcoin accumulation and decreased holdings on exchanges.
Overall, the data indicates a growing sentiment among Bitcoin holders to hold onto their investments for extended periods. This behavior might be influenced by a bullish outlook for Bitcoin’s future value and the expectation of price appreciation following the upcoming halving event.