The supply of Bitcoin (BTC) and Ethereum (ETH) on exchanges fell in June as self-custody was favored against the backdrop of increased regulation and rising crime. Goldman Sachs reported in a report today, citing on-chain data.
Bitcoin supply drops 4%
Bitcoin supply fell 4%. It is now close to its December 2022 level, the lowest since November 2020, just before the 2021 bull market began. Ethereum supply fell 5.8%, its lowest level since May 2018.
Goldman Sachs attributed this trend to a number of factors, stating: “Major centralized cash exchanges are facing regulatory headwinds, with investors on high alert. It continues to be a concern across the cryptocurrency market, highlighting asset holders’ preference for self-custody: the well-known ‘it’s not your key, it’s not your coin’. In the case of Ethereum in particular, the ability to withdraw staked Ethereum has led to a preference for staking rather than passively storing it on an exchange.” Stated.
Bitcoin sales by miners increase
Goldman Sachs pointed out that Bitcoin miners are selling their bitcoin holdings in the wake of the strong performance of cryptocurrencies, and June was a record sale amount. The total amount of bitcoin inflows from miners to exchanges has nearly doubled since May, reaching $99 million (approximately ¥14.355 billion at an exchange rate of ¥145 to the dollar). According to TradingView data, bitcoin price is up about 12%.
Address activity recovered
Bitcoin and Ethereum monthly address activity rebounded to 15.5% and 37.5% respectively as transaction fees returned to normal in June, according to a Goldman Sachs report. said to have increased. Month-over-month, Ethereum’s average daily burn volume decreased by 65.1% and average daily fees decreased by 63.3%.
New on-chain activity also increased in June. The average daily number of new addresses for Bitcoin and Ethereum increased by 9.8% and 48.2% respectively month-on-month.
｜Editing: Rinan Hayashi
| Image: Dimitris Vetsikas/Pixabay
｜Original: Bitcoin, Ether Supply on Exchanges Fell in June: Goldman Sachs