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<p><img src="https://hx24.huoxing24.com/image/news/2021/01/11/1610332858936793.jpg"/></p>
<p><strong> Reported on January 11 that </strong>according to CryptoQuant data, the Bitcoin holdings of cryptocurrency exchanges have continued to decline in the past year.</p>
<p><img src="https://hx24.huoxing24.com/image/crawler/2021/01/11/1610332704430258.jpg"/></p>
<p>The above figure shows that during the liquidity crisis in mid-March 2020, the number of bitcoins held in cryptocurrency exchange wallets reached a peak of 3 million, when the price of one bitcoin plummeted below US$4,000. Since then, as the price of Bitcoin continued to rise, many investors began to withdraw their assets from the exchange. This results in the current exchange holdings of less than 2.4 million bitcoins.</p>
<p>During the same period, Glassnode data shows that the number of Bitcoin whales (addresses holding at least 1,000 Bitcoins) has continued to increase, which is positively correlated with the price of the cryptocurrency. "The number of Bitcoin whales exceeded 2,000, and the price soared to $40,000."</p>
<p><img src="https://hx24.huoxing24.com/image/crawler/2021/01/11/1610332704430195.jpg"/></p>
<p>Cryptopotato pointed out that the number of bitcoins currently stored in cryptocurrency exchanges is gradually decreasing, while the number of whales is increasing. At the same time, considering the impact of the halving and the fact that institutions purchase large amounts of Bitcoin, it is expected that a major liquidity crisis may occur in the cryptocurrency market.</p>
<p>"If Bitcoin's liquidity is very low, it means that there are fewer Bitcoins available for trading. In the medium term, this may make Bitcoin more scarce."</p>
<p>In late December of last year, Rafael Schultze-Kraft, CTO of Glassnode, stated that Bitcoin is facing a supply and liquidity crisis. "In the circulating supply of Bitcoin, only 12% of the tokens are liquid, and 14.4 million Bitcoins are held by entities with weak liquidity, accounting for 78% of the current supply. This has caused huge liquidity in Bitcoin. And supply tightening.” At the same time, he believes this is also a bull market for Bitcoin.</p>
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