The likelihood of another steep selloff for BTC is diminishing as more holders are accumulating, according to data from Santiment.
The amount of Bitcoin (BTC) held on exchanges has been declining steadily since mid-May, offering reassurance that the worst of the market selloff has passed.
At current levels, Bitcoin’s exchange supply is at its lowest level since early January, according to crypto analytics firm Santiment. “The 6-month low is a promising sign, as it generally will indicate that there is a decreased risk of more major $BTC selloffs,” the analytics firm tweeted Monday morning.
Exchange-flow data is an important metric for monitoring Bitcoin’s price trajectory in the short terms. Net inflows foretell a steep selloff as more investors transfer their holdings from cold wallets, possibly for the purpose of selling.