Bitcoin exchange reserves last saw a major drop in December 2018 after BTC faced a series of price declines, Santiment cites reason for Friday’s BTC drop
As per data provided by on-chain data vendor Santiment, investors have been withdrawing their BTC from crypto exchanges en masse, leaving only 10.87 percent of the circulating supply there.
As the main crypto is removed from trading platforms, the risks of any large sell-off diminish, says Santiment. He also named the reason why Bitcoin fell $1,000 on Friday, taking a downside with traditional markets.
Bitcoin exchange supply sees massive decline
Santiment has tweeted that after Bitcoin price has seen several consecutive drops, the amount of flagship cryptocurrency held on exchange wallets has gone down sharply. According to the data from the analytics company, it has reached the 10.87 level – the lowest mark, which was last observed on crypto trading venues in December 2018 in the middle of the crypto winter.
The company’s analysts believe that these massive withdrawals are likely to prevent any major selling now.
Here’s what pushed BTC 4.5% down on Friday, Vitalik Buterin steps in
In an earlier tweet, Santiment stated that the reason Bitcoin went 4.5 percent down on Friday, dropping from $43,863 to 41,928 was caused by the talks of Russian invasion into Ukraine – talks and expectations of that have been increasing recently.
Experts in the United States and other Western countries believe that Russia is very likely to start a war against Ukraine to prevent it from joining NATO and has therefore concentrated large amounts of war units near from the border with Ukraine in several strategic places.
Santiment has stressed that the volatility has touched not only Bitcoin but equities markets as well and increased volatility will continue as long as spikes on this topic will go on.
Ethereum co-founder Vitalik Buterin, of Russian-Canadian descent, took to Twitter on Friday and posted a message in the Kremlin in Russian, urging Russian political leaders not to attack Ukraine but to find a peaceful solution.
