Fidelity Reports Decline in Bitcoin Exchange Supply Due to Public Company Accumulation
Fidelity reports that Bitcoin supply on exchanges has dropped to its lowest level in six years, now at around 2.6 million BTC. This decline is largely due to increased accumulation by public companies, including major purchases by firms like Strategy. The trend indicates growing institutional interest and a shift toward long-term holding strategies.
Fidelity Digital Assets, a subsidiary of the $5.8 trillion asset manager Fidelity Investments, has observed a significant decrease in the supply of Bitcoin on cryptocurrency exchanges. This trend is attributed to substantial purchases by publicly traded companies, a movement expected to intensify in the near future .Cointelegraph+1PANews+1Binance+1PANews+1
Key Highlights:
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Bitcoin Reserves at Six-Year Low: The amount of Bitcoin held on exchanges has dropped to approximately 2.6 million BTC, marking the lowest level since November 2018.Binance+3Cointelegraph+3Bitget+3
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Significant Withdrawals: Since November 2024, over 425,000 BTC have been moved off exchanges, indicating a shift towards long-term holding strategies.Wikipedia+5Bitget+5Binance+5
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Corporate Accumulation: Publicly traded companies have collectively acquired nearly 350,000 BTC during the same period, with firms like Strategy leading the charge by purchasing 285,980 BTC, accounting for 81% of the total corporate acquisitions .Bitget+2Cointelegraph+2PANews+2
This trend reflects a growing institutional interest in Bitcoin, suggesting a move towards considering the cryptocurrency as a strategic asset. The reduction in exchange-held Bitcoin could imply decreased selling pressure, potentially influencing market dynamics in the coming months.
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