article image

Yuri Molchan

Bitcoin exchange reserves have seen a major decline last seen in December 2018 after BTC faced a series of price drops, Santiment names the reason for Friday’s BTC drop


As per data provided by on-chain data vendor Santiment, investors have been withdrawing their BTC from crypto exchanges en masse, leaving only 10.87 percent of the circulating supply there.

As the leading crypto is getting moved off trading platforms, risks of any big sell-off becomes lower, Santiment says. It has also named the reason why Bitcoin dropped a $1,000 on Friday, taking a decline along with traditional markets.

Bitcoin exchange supply sees massive decline

Santiment has tweeted that after Bitcoin price has seen several consecutive drops, the amount of flagship cryptocurrency held on exchange wallets has gone down sharply. According to the data from the analytics company, it has reached the 10.87 level – the lowest mark, which was last observed on crypto trading venues in December 2018 in the middle of the crypto winter.

The company’s analysts believe that these massive withdrawals are likely to prevent any major sell-off now.

Here’s what pushed BTC 4.5% down on Friday, Vitalik Buterin steps in

In an earlier tweet, Santiment stated that the reason Bitcoin went 4.5 percent down on Friday, dropping from $43,863 to 41,928 was caused by the talks of Russian invasion into Ukraine – talks and expectations of that have been increasing recently.

Experts in the US and other Western countries believe that Russia is highly likely to start a war against Ukraine to prevent it from joining the NATO and therefore has concentrated large amounts of war units near the border with Ukraine in several strategic locations.

Santiment has stressed that the volatility has touched not only Bitcoin but equities markets as well and increased volatility will continue as long as spikes on this topic will go on.

Ethereum cofounder Vitalik Buterin of a Russian-Canadian origin took to Twitter on Friday and posted a message to Kremlin in Russian, urging Russian political leaders not to attack Ukraine but find a peaceful solution.


Source link