On-chain
data
shows
that
Bitcoin
and
Ethereum
exchange
supplies
have
gone
opposite
ways
recently,
a
sign
that
a
rotation
may
be
on.
Bitcoin’s
Exchange
Supply
Has
Gone
Down
While
Ethereum’s
Has
Risen
According
to
data
from
the
on-chain
analytics
firm
Santiment,
the
Supply
on
Exchanges
metric
has
dropped
to
the
lowest
level
since
December
2021
for
Bitcoin
recently.
The
“Supply
on
Exchanges”
keeps
track
of
the
total
amount
of
a
cryptocurrency’s
supply
in
the
wallets
associated
with
all
centralized
exchanges.
When
the
value
of
this
metric
rises,
it
means
the
investors
are
making
deposits
of
the
asset
to
these
platforms
right
now.
Holders
transfer
their
tokens
to
the
exchanges
whenever
they
want
to
use
one
of
the
services
they
provide,
which
can
include
trading.
On
the
other
hand,
a
decline
in
the
indicator
suggests
that
investors
are
currently
taking
coins
off
the
exchanges
and
potentially
holding
onto
them
for
extended
periods.
Now,
here
is
a
chart
that
shows
the
trend
in
the
Supply
on
Exchanges
for
the
top
three
coins
in
the
sector
by
market
cap:
Bitcoin
(BTC),
Ethereum
(ETH),
and
Tether
(USDT).
The value of the metric appears to have been moving oppositely for BTC than the other two | Source: Santiment on X
As
displayed
in
the
above
graph,
the
supply
of
Bitcoin
exchanges
has
sharply
declined
over
the
last
few
months.
The
metric’s
value
now
stands
at
942,170
BTC,
the
lowest
the
cryptocurrency
has
observed
since
December
2021.
At
the
same
time
as
these
BTC
withdrawals
have
come,
Ethereum
and
Tether
have
seen
net
deposits
instead.
As
mentioned,
deposits
can
signify
that
investors
may
want
to
trade
away
the
asset.
As
such,
given
the
opposite
trend
taking
place
in
Bitcoin,
it
would
appear
possible
that
investors
have
been
making
the
ETH
and
USDT
inflows
rotate
into
the
original
cryptocurrency.
Following
these
deposits,
the
supply
on
exchanges
reached
17.98
million
ETH
for
Ethereum
and
16.04
billion
USDT
for
Tether.
Naturally,
this
rotation
of
capital,
if
one
is
truly
underway,
would
be
a
bearish
sign
for
ETH,
as
it
shows
investors
are
looking
at
the
asset
as
being
too
risky
right
now.
USDT,
being
a
stablecoin
with
its
value
tied
to
the
US
dollar,
would
not
be
affected
by
these
exchange
inflows.
Instead,
USDT
exchange
inflows
are
generally
positive
for
the
market
as
a
whole,
as
they
suggest
some
investors
who
had
tied
up
their
capital
in
this
stable
asset
are
ready
to
deploy
it
elsewhere.
Despite
this
bullish
development
Bitcoin
has
seen
recently
in
terms
of
its
exchange
supply,
its
price
has
only
been
consolidating
sideways
over
the
past
few
months.
BTC
Price
At
the
time
of
writing,
Bitcoin
is
floating
around
$67,900,
down
almost
5%
over
the
past
seven
days.
Looks like the price of the asset has been moving sideways recently | Source: BTCUSD on TradingView
Featured
image
from
Dall-E,
Santiment.net,
chart
from
TradingView.com
Go to Source
Author: Keshav Verma
