September 28, 2023

Bitcoin change inflows and provide see remarkable decline

CryptoQuant bitcoin research indicates an 80% decline in the number of addresses logging inflows over a span of 612 days. This marks the largest decline ever recorded in the history of bitcoin.

The analysis, which considers data from October 2021, highlights an even higher decline of 84% when compared to the peak in May 2021.

A record high

In the thread, CryptoQuant highlights the significant decrease in the amount of bitcoin being deposited into cryptocurrency exchanges and the overall supply of bitcoin available on these platforms.

Later in the thread, the platform points to March 2020, when bitcoin witnessed its highest recorded supply on exchanges after a decade of consistent growth; there has been an unprecedented and continuous decline in Bitcoin’s supply over the past 1,200 days.

The shift in supply dynamics signifies a significant change in the way bitcoin is being held and traded, showing that long-term hodlers prefer storing their assets in self-custody wallets.

The observations made in the thread indicate a positive evolution in the overall perception of bitcoin. This is further supported by recent developments in the financial industry, including the filing or re-filing of ETFs by major players like BlackRock, as well as the introduction of upcoming regulatory frameworks in leading markets, particularly within the G20. 

Both announcements have been closely tied to the price of bitcoin, with the price increasing following ETF listings and falling again with the announcement of the ETF applications being inadequate.

On the other hand, the debate about the classification of cryptocurrencies, whether as a security, commodity, currency, or another asset class, remains a prominent topic of discussion in regulatory circles.

Since the announcement, CoinMarketCap is showing bitcoin’s price increased 1.38% in the last 24 hours, where it currently sits at $30,998.13.

Bitcoin price gains

Alongside news about inflows, analysts have identified a notable shift in the strength of bitcoin’s price during U.S. market hours, indicating a positive trend since November 2022, when the market experienced a significant downturn. 

After a challenging period between mid-February and mid-June, reports show that bitcoin has showcased a year-to-date climb of 62%, including a 13% increase over the last 30 days and a 1.5% rise in the weekly timeframe.

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