According to data from on-chain analyst firm CryptoQuant, the total number of bitcoins held by all cryptocurrency exchanges as of the previous day decreased to 2.3 million. This is due to the leakage of 68 million BTC from all exchanges the day before.
In Coinbase Pro, which is mainly used by institutional investors, it was estimated that 15,700 BTC worth $850 million was lost the day before.
As the outflow of bitcoin from the exchange continues, the amount of bitcoin holdings at the exchanges reached the lowest level in about two and a half years.
Blockchain analyst Glassnode explained that the supply pressure of bitcoin has been going on for the longest time ever, and the main reason is that long-term holders are not selling bitcoin even if the bitcoin price falls unlike in the past.
Glassnode pointed out that maintaining a long position by institutional investors is also increasing the supply pressure of bitcoin.
It is analyzed that this is because companies investing in bitcoin view bitcoin as an investment rather than a trading or profit mechanism, and use bitcoin as a hedge against US dollar inflation.
For example, Micro Strategy recently bought more than $10 million of bitcoin while the price of bitcoin fell below $50,000.
In other words, as institutions and long-term holders use the price adjustment of bitcoin as a buy timing rather than a sell, the supply pressure of bitcoin is increasing.