The level of bitcoin trading on exchange platforms reaches figures similar to those recorded in 2018, while the number of wallets with at least 1 BTC sets a new record.
Ethereum (ETH) levels on exchange platforms have hit a low not seen in over 5 years. During the same period, the number of active Ethereum addresses has doubled.
According to the analysis carried out by the financial firm Santiment, more than 16% of all ethers issued to date were deposited in exchanges in 2020. However, by June 2023, this figure has decreased to 6.4%. This represents a reduction of more than 50% in relation to the total supply. Currently, less than 2 million ETH are deposited on exchange platforms, a figure similar to that of 2018, while in 2020 it reached an all-time high, exceeding 3 million ETH.
Despite the decrease in deposits on exchange platforms, between 2018 and 2023, the number of active Bitcoin users has increased. According to Glassnode data, in May 2018, the average number of active addresses in Bitcoin was around 500,000. This figure contrasts with the one recorded in April 2023, which is close to one million. Furthermore, it has been revealed that in May 2023, more than 1 million addresses own at least 1 BTC.
Glassnode considers active addresses to be those that have received or sent any amount of BTC, and that have been confirmed on the blockchain.
The analysis company CoinMetrics shows sharp decreases in bitcoin reserves on exchanges. One of the steepest declines occurred during the FTX exchange crisis in November 2022. At that time, exchange reserves fell from 2.5 million BTC to around 2.2 million, which represented a decrease of more than 10 % in just 10 days.
If we look closer, the lawsuits filed by the United States Securities and Exchange Commission (SEC) against the exchanges Binance and Coinbase have impacted the exchanges' reserves. The CoinMetrics chart shows that from June 5 (the date the lawsuit against Binance was filed) to the current date, reserves have decreased by 2%, possibly due to fears of freezing funds.
These lawsuits against exchanges have generated some uncertainty among investors, as there is a possibility that regulators will freeze assets, which would prevent withdrawals and could cause million-dollar losses. Although the SEC filed a request to freeze Binance US funds, it was dismissed by a court.
Additionally, the exchanges experienced withdrawals of over 80,000 BTC on June 5 and 7, representing negative cash flow (more withdrawals than deposits). This suggests that much of the withdrawals went to private addresses rather than other exchanges.
In the world of Bitcoin, there is a fundamental principle that says: "If you don't have the keys, you don't have the bitcoins." By storing private keys in a wallet of your own, especially a hardware wallet, it is virtually impossible to be susceptible to government confiscation or seizure. Only those who have access to the private keys will be able to access your bitcoins.
