Bitcoin Holders Retain Assets as Exchange Activity Drops

Bitcoin (BTC) continues to struggle with breaking the $60,000 threshold, but this has not led to a sell-off among holders.

In fact, many are retaining their assets, as evidenced by a drop in exchange activity.

The daily number of Bitcoin addresses sending funds to exchanges has recently reached a multi-year low. This decline aligns with market expectations surrounding the Federal Reserve’s decision on September 18.

On-chain data reveals a decrease in Exchange Depositing Addresses, a metric tracking Bitcoin inflows to exchanges. This figure peaked for the year on March 5 and has been declining since.

In the past week alone, deposits to exchanges have fallen by 19%. A drop in this metric typically indicates that investors are holding their Bitcoin rather than selling.

This reduced exchange activity comes amid speculation about a potential 50% chance of a 0.5% rate cut by the Federal Reserve. The easing of Bitcoin’s selling pressure suggests investors might be anticipating a more favorable market. This sentiment is also reflected in Bitcoin’s funding rate, which turned positive recently after a week of negative values.