Bitcoin’s Supply Is Drying Up With 6.3% Of It Is Left On Exchanges

Bitcoin’s supply is drying up with 6.3% of all of the supply being left on exchanges and falling further at the end of 2021 which represents December as the lowest month on average in years for BTC supply so let’s read more in our latest Bitcoin news.

The amount of Bitcoin’s supply is drying up and has been falling since the halving in 2020 as per the study from CryptoRank with more access to acquire BTC on exchanges whcih is also declining. However, by the second half of 2020, the supply of BTC on exchanges stood for 9.5% of the quantity. The percentage declined to 7.3% of all BTC on wallet exchanges and only 6% percent of Bitcoin supply was accounted for the exchange wallets but since the halving, Bitcoin’s falling supply in circulation was on a downward trajectory with 1.3 million BTC in circulation.

The biggest worldwide crypto platforms as per CryptoRank’s data and dominate the exchanges where BTC is kept. However, it is worth noting that coinbase is still the most popular crypto exchange in terms of total BTC held in the wallets and lost some of the clouts over the year. According to CryptoRank, Coinbase used to account for almost half of the BTC on wallets but the number decreased to 44.2%. Binance has about 25% of all BTC on exchanges while Bitfinex is on the lowest level with 14.6% of BTC on exchanges held on it.

The announcement came on the heels of the bullish price indicators news that coincide with Bitcoin’s higher price movement. To start with, the illiquid BTC supply reached a monthly supply of 100,000 BTC that changes from a liquid to an illiquid state. While most investors choose to retain their BTC one exchanges which are known as hot storage, there’s a risk that turning over the keys to the BTC to exchange or the third party could leave your BTC vulnerable to attack or to get hacked. If Bitcoin is kept in cold storage or a combination of cold and hot storage, the security procedures are in place to keep it safe from hacking. Binance’s CEO Changpeng Zhao indicated that the storing keys on exchanges could provide even more security guarantee, noting:

“Many hardcore crypto ogs advocate storing your own keys. But the truth is, today most people are not able to secure a key even from themselves (losing it). A trusted centralized exchange is #SAFUer for most people. The numbers speak for themselves.”

This is despite BTC supporters like Andreas Antonopouls’ attempts to make “not your keys, not your bitcoin” a daily mantra.