According to data from Glassnode, the amount of Bitcoin and Ethereum on centralized exchanges (CEX) has dropped to the lowest level in nearly 4 years. Analysts believe that this is a sign of cryptocurrency investors shifting towards long-term holding rather than short-term profits, and it is also a bullish signal for the crypto market.
Cryptocurrency data platform Glassnode’s data shows that the current balance of Bitcoin and Ethereum on centralized exchanges has dropped to the lowest level in nearly 4 years. The BTC balance is less than 2.3 million coins, worth about $158 billion, while ETH is less than 16 million coins, worth about $58 billion.
Investors are turning to long-term holding
In response to this situation, “BITCOINIST” reported last night that since July 2020, the amount of Bitcoin and Ethereum on centralized exchanges has been continuously decreasing, indicating a change in investor sentiment. They are currently more inclined to hold tokens for the long term rather than engage in frequent short-term trading.
Regarding the reasons for this shift, analysts pointed out:
Institutional entry drives Bitcoin and Ethereum to rise
In addition, with the approval of Bitcoin spot ETF trading by the U.S. Securities and Exchange Commission (SEC) in early January, traditional financial institutions such as BlackRock and Fidelity have the opportunity to bring massive funds into the cryptocurrency market, providing new growth momentum for Bitcoin in this bull market.
On the Ethereum side, in addition to the SEC’s approval of Ethereum spot ETFs again, the decentralized finance (DeFi) applications brought by Ethereum to the cryptocurrency market have outlined a financial blueprint worth hundreds of billions of dollars. This has led investors to have increasing confidence in its long-term growth potential under the narrative of future finance.