According to Glassnode data, the amount of Bitcoin and Ethereum on centralized exchanges (CEX) has dropped to the lowest level in nearly 4 years. Analysts believe that this indicates cryptocurrency investors are shifting towards long-term holding rather than short-term profit-taking, signaling bullish sentiment in the crypto market.
Cryptocurrency data platform Glassnode data shows that the current amount of Bitcoin and Ethereum on centralized exchanges (CEX) has dropped to the lowest level in nearly 4 years. The BTC balance is less than 2.3 million coins, worth about $158 billion, while ETH is less than 16 million coins, worth about $58 billion.
Investors shift to long-term holding
In response to this situation, “BITCOINIST” reported last night that since July 2020, the amount of Bitcoin and Ethereum on centralized exchanges has been continuously decreasing, indicating a change in investor sentiment. They are currently more inclined to hold tokens long-term rather than engage in frequent short-term trading.
As for the reasons for this shift, analysts pointed out that institutional entry is driving the rise of Bitcoin and Ethereum. Additionally, with the U.S. Securities and Exchange Commission (SEC) approving the listing of Bitcoin spot ETF for trading in early January, traditional financial institutions such as BlackRock and Fidelity have the opportunity to bring massive funds into the cryptocurrency market, providing new growth momentum for Bitcoin in this bull market cycle.
On the Ethereum side, in addition to the SEC approving the Ethereum spot ETF again, the DeFi (decentralized finance) applications brought by Ethereum to the cryptocurrency market have outlined a financial blueprint worth hundreds of billions of dollars. This has led investors to maintain increasing confidence in its long-term growth potential under the narrative of future finance.
Related reports
Rich Dad calls out: Bitcoin will surge to $350,000 on August 25! Buy BTC, ETH, and Solana quickly.
Arthur Hayes: Global central bank interest rate cuts are coming early, go long on Bitcoin now, and the altcoin season is not far off.
Can Google search trends really predict Bitcoin trends? Analyzing historical bull and bear markets for you.