Data confirms that the price of Bitcoin (BTC) held on exchanges has fallen to an all-time BTC price high in 2017.

Tracked by on-chain analytics companies glass nodeThe latest data shows that less than 12% of the BTC supply currently resides in exchange wallets.

Analyst: Bitcoin price ‘on the cusp of real price discovery’

Bitcoin returns to exchanges during the 2023 BTC price rally, during which BTC/USD more than doubles from cycle lows.

However, the long-term trend of tokens leaving exchanges since late April has resumed, and this month, it reached a milestone.

As of July 10, 11.59% of the available BTC supply is currently sitting in known exchange wallets flagged by Glassnode. The figure has not been this low since mid-December 2017, when Bitcoin hit an all-time high of $20,000.

Bitcoin balance percentage in exchange chart. Source: Glassnode

“Only 11.5% of the bitcoin supply is left on exchanges, the lowest level in five years,” said William Clemente, co-founder of cryptocurrency analysis firm Reflexivity Research. commented.

In bitcoin terms, exchange balances have returned to March 2018 levels, with known wallets holding a total of 2.252 million bitcoins as of July 10.

Bitcoin balance in exchange chart. Source: Glassnode

Taking Coinbase as an example, Joe Burnett, chief analyst at mining company Blockware, pointed out that since the cross-market crash in March 2020, BTC balances have more than halved.

“Exchanges are running out,” he said in conclusion In a recent Twitter comment, he added that he believes Bitcoin is “on the cusp of true price discovery.”

Coinbase BTC balance chart.Source: Joe Burnett/Twitter

The number of Bitcoin whales is increasing

As Cointelegraph reported, expectations of a BTC price squeeze are in line with expectations that the U.S. may soon approve a Bitcoin spot price exchange-traded fund (ETF) due to falling supply and increased buyer demand.

related: Standard Chartered Bank: Bitcoin supply shock will send BTC price to $120,000

Some argue that other advances, especially artificial intelligence (AI), should have similar effects over time.

At the same time, transaction balances continued to decrease as the number of bitcoin whale entities (entities with the largest wallet balances outside of exchanges) increased.

Roughly 40 new whales have emerged since the end of April, and on July 7 their numbers reached their highest level since the FTX crash last November.

Chart of the number of entities with Bitcoin balances over 1,000 BTC. Source: Glassnode

A curious exception to the exchange outflow trend is Poolin, which continues to Send large amount of BTC to Binance.

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