- The level of Bitcoin deposits to the exchanges has reached the lowest point since 2016 — a sign of a possible bullish trend.
- Axel Adler Jr., an analyst, points to a strong shift toward long-term holding, with depositing addresses much below the historical average.
- The growing HODL mindset and decreasing coin sales, meaning less supply in the market, and this supports higher Bitcoin prices.
The fact that Bitcoin deposits to exchanges are now at levels not seen since December 2016 is the kind of bullish sign that most of the crypto community finds reassuring. Supporting this view is AnalystAxel Adler Jr., who tweeted on X about a CryptoQuant data showing that there has been a steady decline in the number of investors sending Bitcoin to exchanges since 2022.
This indicates that more investors are holding onto their BTC instead of selling it, demonstrating a greater level of confidence regarding the future prospects of the asset.
Source: X @AxelAdlerJr
Low Selling Pressure Implied by Fewer Bitcoin Addresses
The data from CryptoQuant shows that the deposit addresses’ moving average for the last 30 days has fallen to just 52,000. In comparison, the longer-term 365-day average stands at 71,000.
The drop represents a major decrease in the number of people moving Bitcoin onto exchanges, which is usually a predictor of a possible BTC sell-off. Adler noted that today’s figures are quite significant given that over the last decade the average, or most common, number of depositing addresses has been around 92,000.
The present level is on par with that of late 2016, when the leading digital asset started its legendary run in 2017.
The Long-Term Holding Preference in Bitcoin Behavior
The chart also revealed the key moments in Bitcoin’s history that caused the number of exchange depositors to surge or fall. In 2021, this reached a peak point as BTC deposits surpassed 214,000.
Since then, those numbers have steadily declined. The decline in coin sales has quadrupled in the last three years, according to Adler with more ‘HODL’ attitude seen among Bitcoin holders as of late.
The “HODLing” practice, popular among those in the crypto community, could sometimes lead to a minimal supply in the market, and therefore upward pressure on prices. This is because with fewer individuals sending BTC to exchanges, there is less selling activity, thus relieving the downward pressure on prices.
