Bitcoin Exchange Depositing Addresses at Multi-Year Low

Bitcoin (BTC) centralized exchange depositing addresses have reached their lowest level since 2016, indicating a potential reduction in selling pressure.

According to recent research from CryptoQuant, the number of bitcoin exchange depositing addresses has fallen to 132,100, marking a multi-year low. This metric reflects the number of addresses sending inflows to exchanges, suggesting that fewer investors are selling coins on spot exchanges, which could correlate with decreased selling pressure.

Julio Moreno, Head of Research at CryptoQuant, stated that lower deposits into exchanges might lead to reduced selling pressure, as less bitcoin becomes available for sale.

However, Moreno noted that the decline in deposits could also signal lower demand for bitcoin. When fewer deposits are made, it may reflect that traders are less interested in betting on price increases through long positions in derivatives.

Additionally, since the start of the year, bitcoin reserves on centralized exchanges have decreased by over 15%. CryptoQuant’s data shows approximately 470,000 fewer bitcoins on centralized exchanges from January to September, indicating a potential long-term holding strategy by investors.

In the last 24 hours, the price of bitcoin increased by around 5%, reaching $61,019 at 11:38 a.m. ET according to The Block’s Price Page.