The number of addresses transferring Bitcoin to exchanges dropped to a one-year low.

The number of investors moving the asset to exchanges looks to have been affected as Bitcoin struggles to trade over $50,000 amid increased volatility.

According to Glassnode statistics, the number of Bitcoin addresses transferring BTC to exchanges reached a record 13-month low of 4,197.9 for the seven-day moving average (7-day MA) on December 12.

Furthermore, on November 24, 2021, the indicator that counts the lot of distinct addresses that show as a sender in a transaction delivering funds to exchanges reached a 13-month low of 4,202.91.

The amount of BTC addresses transferring the currency to exchanges suggests that investors may opt to keep the commodity in anticipation of a fresh surge.

The top-ranked cryptocurrency has experienced massive volatility in recent weeks, falling below the critical $60,000 level and finally falling below $50,000. Bitcoin was trading at $50,400 as of press time, up 4% in the previous 24 hours.

The market as a whole was hit by Bitcoin’s decline, with other assets seeing negative gains. As a result, it is reasonable to suppose that holders were hesitant to move the asset to exchanges since they would most likely face losses if they traded their BTC against other assets.

This is also consistent with Bitcoin’s rising popularity as a financial asset and a hedge against rising inflation fears. It is worth mentioning that investors who keep their Bitcoin in cold wallets typically migrate the asset to cryptocurrency trading platforms in order to profit from a large price fluctuation. However, investors have suffered losses as a result of the continuous volatility.

Patrick

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