According to data from the cryptocurrency data platform Glassnode , the current number of Bitcoin and Ethereum on centralized exchanges (CEX) has fallen to the lowest level in nearly four years. The balance of BTC is less than 2.3 million, worth approximately US$158 billion, and ETH There are less than 16 million pieces, worth about $58 billion.
Investors switch to long-term holdings
In response to this situation, "BITCOINIST" reported last night that the number of Bitcoin and Ethereum on centralized exchanges has continued to decline since July 2020, indicating that the mentality of investors is changing, and they are currently more inclined to long-term Hold the token instead of frequent short-term trading:
These investors no longer pursue quick gains, but choose to hold their own cryptocurrencies regardless of whether the market is high or low, using the "diamond hand" strategy. Many people even use dollar-cost averaging, gradually buying more cryptocurrencies over time to build up their long positions.
As for the reasons for this shift, analysts noted:
The market disruption caused by economic turmoil, coupled with rising inflation and other financial disasters in the overall economy, has made alternative assets with limited supply and hedging value such as Bitcoin increasingly attractive.
Institutional entry drives Bitcoin, Ethereum up
In addition, with the U.S. Securities and Exchange Commission (SEC) approving the listing and trading of Bitcoin spot ETFs in early January, traditional financial institutions such as BlackRock and Fidelity have the opportunity to bring huge amounts of funds into cryptocurrency. The bull market has brought new growth momentum.
On the Ethereum side, in addition to the SEC once again approving the Ethereum spot ETF, the DeFi (decentralized finance) applications that Ethereum brings to the cryptocurrency market have outlined a financial blueprint worth tens of billions of dollars, allowing investment Under the narrative of future finance, investors maintain increasing confidence in its long-term growth potential.
