The supply of bitcoin on centralized exchanges has fallen to 2.51 million coins, the lowest since November 2018. This is evidenced by data from Glassnode.
The outflow of BTC from centralized trading platforms to more secure non-custodial wallets may indicate that market participants are favoring long-term investment strategies.
Another possible reason is the sanctions against Russia, under which a number of cryptocurrency exchanges blocked user accounts from this region. Wanting to secure their assets, the latter prefer to control private keys on their own.
Major platforms like Binance and Kraken have stated that they will not unilaterally block clients from the Russian Federation, but will take this step at the request of global regulators.
Earlier, Binance stopped working with cards of Russian sanctioned banks. The company also blocked transactions with Visa and Mastercard plastic issued in the territory of the Russian Federation.
A similar trend is observed in relation to the second largest cryptocurrency by capitalization. Ethereum supply on centralized platforms has fallen to 21.6 million ETH, refreshing its lowest since September 2018.
At the same time, the share of ETH locked in the DeFi protocol continues to be quite high. In October 2021, the indicator peaked above 28% – now this value is 27.55%.
According to CoinGecko, over the past seven days, Bitcoin has risen in price by 7.7%, Ethereum – by 13.5%. At the time of writing, the first asset is trading near $41,860, while the second is trading at $2,925.
Recall that in March 2022, Elon Musk said that in anticipation of rising inflation, he did not plan to sell his bitcoins, Ethereum and Dogecoin.