New data from blockchain analysis firm, CryptoQuant, shows that the number of Bitcoin on exchanges has dropped to a 2-year low as outflows continue to increase.
According to CryptoQuant, Bitcoin supply on exchanges was 2.3 million as of March 8, following an outflow of 61,800 BTC. This figure was over 30,000 more than the outflow from the previous day.
Popular American exchange Coinbase Pro witnessed an outflow of 15,700 BTC valued at $850 million on Monday.
The decline of Bitcoin’s supply on exchanges has now dropped to a 2.5-year low, which was first recorded at the beginning of February. Analysts have warned that the prolonged accumulation of the leading digital asset could lead to a massive supply squeeze.
Another report from Glassnode revealed that new investors are undeterred by the recent downward swings and are choosing to hodl their Bitcoin.
It is possible that investors are simply moving their holdings into cold storage. This is in line with the narrative that investors are in for the long haul. There have been predictions that Bitcoin could double its price to $100,000 within the next 12 months.