Bitcoin (BTC) has surged past the $48,000 mark for the first time since the approval of spot ETFs by the U.S. Securities and Exchange Commission (SEC), signaling a return of bullish sentiment to the market.
On-chain data indicates that over the last 30 days, investors have been actively withdrawing coins from exchanges. As a result, the Bitcoin balance on major centralized platforms has dropped to its lowest level in six years.
Investors Favor Self-Custody of BTC According to data from the analytical platform Santiment, the supply of Bitcoin on centralized exchanges recently dropped to 5.3% of the total circulating supply for the first time since December 2017. Consequently, nearly 95% of Bitcoins are currently held in non-custodial wallets.
The chart below illustrates that the supply on Centralized Exchanges (CEX) has been in freefall since January 10 – coinciding with the approval of BTC spot ETFs.
A decrease in supply on centralized trading platforms is typically considered a bullish signal, indicating that investors are not intending to sell assets in the near future.
Bitcoin Price Movement In the last 24 hours, the price of the leading cryptocurrency has twice risen above the $48,000 mark. At the time of writing, Bitcoin is trading around $48,100.
The surge is largely attributed to the actions of miners, who have reduced daily sales from over 800 BTC at the end of 2023 to less than 300 BTC at the beginning of 2024. Additionally, the selling pressure from the Bitcoin trust Grayscale (GBTC) has weakened since the end of January. Furthermore, the rally is fueled by expectations of the upcoming halving event scheduled for April this year.
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