The analysis of Bitcoin deposit addresses indicates a significant decrease in activity, which could reflect a shift in investor psychology.
Decline in Bitcoin Deposit Addresses
Analysis by CryptoQuant's Axel Adler Jr. shows a consistent decline in the number of unique Bitcoin addresses sending BTC to exchanges since 2022. The 30-day moving average of deposit addresses has dropped to around 52,000, notably below the 365-day average of 71,000. Over the past decade, the average number of deposit addresses typically remained at around 92,000. The current level was last observed in December 2016.
Significance of the Data for Bitcoin Price
The decrease in the number of addresses depositing Bitcoin to exchanges likely implies a reduction in the intent to sell. Axel Adler Jr. interprets this as a strongly bullish signal, as the overall sales activity of Bitcoin holders has decreased by nearly 75% over the past three years. This reinforces the decision among holders to HODL Bitcoin, anticipating a future price increase.
Impact of HODL Sentiment on the Market
HODL sentiment can be measured through various metrics, such as coin age distribution and exchange flows. The fact that deposit addresses are at levels not seen since 2016, prior to a significant bull phase, may indicate similar trends. Key takeaways regarding the impact of strong HODL sentiment include reduced selling pressure in the market and a potential supply shock.
Axel Adler Jr.'s analysis from CryptoQuant reveals a significant decrease in Bitcoin addresses sending BTC to exchanges, indicating a strong HODL sentiment. This creates a stable foundation for a potentially bullish outlook on Bitcoin prices, highlighting the importance of holder behavior.
