BTC and ETH display on stock exchanges up to the lowest level in several years: What does this mean?

As the market continues to rise, investor morale appears to be increasingly positive. This is seen in the way traders move and store their origins.

Data analyzed by Santiment market intelligence platform open Bitcoin supplies (BTC) and Eter (ETH) on the exchange of encryption have reached its lowest level in several years. Although this development does not guarantee anything, it is a major thunderbolt sign and has huge impacts on the market.

BTC and ETH supply exchange dries

According to Santiment, BTC supplies on stock exchanges have decreased to 7.1 % for the first time since November 2018. Over the past five years, there have been 1.7 million BTC on encryption trading platforms.

Likewise, ETH now has less than 4.9 % of its supply for the first time in more than 10 years. It also has 15.3 million coins on trading platforms over the past five years.

The shrinking supply of a certain cryptocurrency in the stock exchanges often means a decrease in the assets available for immediate sale. This also means that investors are more confident and transfer their assets to cold storage for long -term reservation, while expecting price estimation in the future.

With the shrinking of the supply, the low sale pressure comes, especially in the short term. This leads to high price fluctuations, especially if the demand increases.

Is the demand rises?

One way is to determine whether the BTC and ETH markets suffer from high demand is to check the flows in its investment products.

Bitcoin exchange funds traded in the United States (ETF) Record Eight days of positive flows from the last ten trading days. Daily flows were implemented to hundreds of millions of dollars. Ethereum Spot also witnessed noticeable flows on the same time frame, albeit not as much as BTC.

In addition, Coinshares digital asset data data indicates that investment products in digital assets attracted positive flows for the fifth consecutive week, where Ethereum and Bitcoin boxes recorded significant flows.

While the demand for BTC and ETH continues, their prices have risen slightly over the past 24 hours. Data from CoinMarketCAP shows that BTC trading is $ 105,290, and ETH is about $ 2527 at the time of this report.