With the increasing prices of Bitcoin, the investors have continued looking up to the asset in the past weeks. The same sentiment can be identified by the recent declining exchange balances.
According to recent data from Glassnode, an on-chain analytics firm, the Bitcoin balance held on exchange addresses have been declining, touching levels not reached in the past 5 years. Data suggests that the Bitcoin balances on exchanges have taken a dip to reach a value of 2.26 million Bitcoins.
Glassnode writes that the current value of balance held on exchanges is the lowest since 14th March 2018, about 1939 days ago. The declining exchange balance signifies that the investors are hopeful of the asset and are largely placing their bids.
Simultaneously, data regarding the increasing accumulation support the implication of the declining exchange balance. The analysis reveals that the cohorts namely shrimps, crabs and fishes have accumulated a significant share of the mined Bitcoin supply. The analytics firm writes that the comparison of the balance change of the shrimps, crabs and fishes cohorts to the volume of new coins issued to miners, all cohorts are meaningfully expanding their balance sheets.
As per data, the shrimp and crab classes are the predominant drivers of the expansion, responsible for 208% of the monthly absorption. The shrimps that is the smaller investors with less than 1 Bitcoin are absorbing 125% monthly while the crabs that is the investors holding anywhere between 1 to 10 Bitcoins absorb over 83%. Simultaneously, the fishes i.e. investors holding 10-100 coins are absorbing a much smaller 22% of the mined supply.
Notably, while the exchange balance has been declining, the overall volume of exchanges has increased from $875 million to $2.24 billion, showing a significant 164% growth. This highlights over the top accumulation of the asset by the investors in the face of increasing prices.
Additionally, as reported by Todayq News, institutional investors as well as the experienced investors have also had their contribution given the increasing hodling in the past weeks. Overall, the declining exchange balance and the increasing accumulation are a positive sign for the asset as evident in the past weeks. As of writing, Bitcoin is trading at $30,735.50 about a 0.77% increase over the past day and 0.48% surge over the past 5 days.