Number of bitcoins and ethers held on centralized crypto exchanges reaches multi-month low

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The number of bitcoins and ethers on the accounts of centralized cryptocurrency exchanges continues to decline. Investors prefer to buy cryptocurrency and HODL it for a long time.

The number of bitcoins on accounts of centralized cryptocurrency exchanges dropped to its lowest level in the past two years. According to CryptoQuant, there are now 2.3 million BTC on deposit accounts at crypto exchanges. A similar situation is developing with ether. Since mid-August 2020, the amount of ETHs on accounts of centralized crypto exchanges was steadily falling. Currently, there are just over 20 million ETH on accounts of crypto exchanges, while in August 2020 their number exceeded 25 million ETHs.

As noted in a recent report by market research firm Glassnode, large crypto investors prefer to accumulate digital assets in cold wallets, using crypto exchanges only for the purchase or sale of cryptocurrencies.

In early March, CEO of Binance Changpeng Zhao noted that he was observing a change in the behavior of institutional investors. According to him, currently, large investors use crypto exchanges only for the purchase of digital assets. They withdraw bought coins to cold wallets for long-term storage. Zhao noted that he had not previously observed such a pattern of behavior among Binance users.

Via: 2Coinfox.info

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