With the decline in the price of bitcoin, there has been a lot of selling from investors. This sell-off trend has contributed to the further decline of the digital asset’s prices in recent times. However, as the bear run continues, there has been a marked reduction in the amount of BTC being sold off by the holders. The decline in the number of addresses that are sending their coins to centralized exchanges speaks volumes about this.
Sellers Beginning To Cool Off
Over the last year, the number of bitcoin addresses that had been sending BTC to centralized exchanges, presumably to sell their holdings, had grown incredibly. But had started to decline in recent weeks as the sell-offs had begun to subside.
According to Glassnode, the number of addresses that were sending bitcoin to exchanges had fallen to a new 22-month low on Thursday. The number had sat around 4,445.369. But on Friday, another consecutive decline was recorded. This time around, the number of addresses that were sending BTC to exchanges was 4,443.202.
Bitcoin falls to mid-$18,000s | Source: BTCUSD on TradingView.com
It is a far cry from the more than 6,000 wallets that were sending BTC to centralized exchanges in the middle of 2022. While the increase in wallets sending BTC to exchanges had correlated with the price decline back in Q2 2022, the opposite is now the case, with the decline coinciding with the drop in the price of bitcoin.
What This Means For Bitcoin
Naturally, data like this points to the fact that there is a growing accumulation trend among investors but not every metric point to this. An example is the HODLer net position change that was recorded by Glassnode on Friday.
Instead of being on the rise as would be expected in an accumulation trend, the HODLer net position change continues to decline. It has now reached a new one-month low of 51,997.708. This shows that even if there might be a sell-off fatigue, it is still enough to put pressure on the price of the digital asset.
The amount of active bitcoin supply is always on the rise. It has now touched a new one-month high of 718,437.728 BTC. It is up slightly from the previous September 11th high of 717,097.427 BTC, still giving credence to the fact that sell-offs continue.
Bitcoin’s price is also succumbing under the sell pressure. The digital asset is currently trading under $19,000 and doesn’t show any indicators of a significant recovery.
Featured image from CNBC, charts from TradingView.com