The BTC fell again today, but according to Santiment, declines like the May crash should no longer occur in the near future
The Santimo analysis provider posted a tweet with data showing that the supply of Bitcoin on centralized cryptocurrency trading platforms has declined sharply to the lowest level in the past six months.
This will likely prevent major new Bitcoin sales, the Santiment team believes.
Bitcoin supply on exchanges fell to the lowest level since January
Now that the world’s flagship cryptocurrency has briefly regained the crucial $35,000 level and hit $35,900, whales and retail users are grabbing Bitcoin on the plunge, while it’s still way below the $65,000 record it hit in April this year.
Since that day (April 14), the BTC has declined by 47.01 percent. So Santiment tweeted that Bitcoin is being moved from cryptocurrency exchanges to cold wallets to be held over the long term.
This factor demonstrates, adds Santiment, that the risks of any major new Bitcoin sales have now been reduced.
the ratio of # Bitcoin‘s supply on exchanges has
encouragingly slid down to its lowest since early January. The 6-month low is a promising sign, as it generally will indicate that there is a decreased risk of more major $BTC selloffs. https://t.co/vFh7pcjUmX pic.twitter.com/t3duiStvg6
— Santiment (@santimentfeed) July 5, 2021
According reported by U.Today, large amounts of Bitcoin were withdrawn from centralized digital exchanges in May, June and earlier as well, reducing available supply.
Bitcoin hashrate sinks thanks to China
Last week, it was reported that the Bitcoin hashrate witnessed a huge drop and hit an all-time low.
It plummeted to the level of 58 EH/s from a historic high of 171 EH/s reached in May. This is the result of the crackdown on cryptocurrency miners heavily conducted by the Chinese government at the time.
Earlier today, Bitcoin managed to get very close to breaking the $36,000 level, however it has now reversed and is trading at $32,293, according to data provided by CoinMarketCap.