Bullish Sign For Bitcoin? Exchange Deposits Keep On Dropping

For many Bitcoin investors, hodling is the best long term strategy to avoid selling at a loss, especially during a rapid slump in price. However, a price surge with hodlers refusing to let go of their positions even when they are in profits means there is a huge positive sentiment among investors.

Data from Glassnode, a cryptocurrency analytics firm, reveals that the number of Bitcoin on-chain deposits to exchange is decreasing as there are now fewer incentives to make investors sell.

In last summer’s rally, unique daily exchange deposits reached more than 60k, an action which implies that investors were taking profits. However, there has been almost a 60% decline since then, bringing the number of transfers to exchanges to a mere 25k.

A Bullish Sign For Bitcoin?

In crypto, hodling mentality means that investors are expecting a price surge and Bitcoin’s halving could be one of the reasons why many people are hodling their bags.

According to Glassnode co-founder, Rafael Schultze-Kraft, bitcoin days destroyed (Binary BDD) shows that “HODLers have been diligently hodling the last months towards the upcoming halving.”

With historical data showing that halving events usually mean a rally for Bitcoin price, no one would want to miss out on the profits if history was to repeat itself, thus the lack of incentive to sell.

When Will Hodlers Sell?

When it comes to long term investment in Bitcoin or any other asset, investors need to know when to exit and let go of their holding.

Several polls reported by Cryptopotato have shown consistency on when hodlers intend to sell their Bitcoin. In the most recent one, most people said they would continue to hold their BTC until it hits a price of $100,000. Some investors, however, have claimed they will never exchange their coins for fiat and hope that someday it replaces traditional fiat currencies to become a primary means of exchange.

Enjoy reading? Please share:

Be the first to know about our price analysis, crypto news and trading tips: Follow us on Telegram or subscribe to our weekly newsletter.