Bitcoin and Ethereum Supply Plummet on Exchanges, According to Goldman Sachs
According to a report from Goldman Sachs, the supply of Bitcoin (BTC) and Ethereum (ETH) held on exchanges experienced a decline in June.
This decrease in supply is attributed to increased regulation and concerns over security, prompting cryptocurrency holders to opt for self-custody.
The report revealed that Bitcoin supply dropped by 4%, reaching levels similar to December 2022, which was the lowest since November 2020. Additionally, the Ethereum supply declined by 5.8%, reaching levels not witnessed since May 2018.
Goldman Sachs highlighted several factors contributing to this trend. Firstly, major centralized spot exchanges face regulatory challenges, which has raised concerns among investors. Additionally, cyber hacks and theft remain significant concerns in the crypto market, driving asset holders to prefer self-custody.
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The report also noted that June witnessed a surge in Bitcoin miners’ inventory sales as miners capitalized on the cryptocurrency’s strong performance. The total monthly inflows of BTC from miners to exchanges nearly doubled from May, amounting to $99 million. During this period, the BTC price increased by approximately 12%, according to TradingView data.
Furthermore, the rebound in transaction fees during June, following the network congestion observed in May, increased monthly address activity for Bitcoin and Ethereum. Bitcoin experienced a 15.5% increase, while ETH saw a surge of 37.5%.
Goldman Sachs also highlighted that the average daily ETH burnt decreased by 65.1%, and average daily fees dropped by 63.3% on a month-on-month basis.
The report further mentioned a rise in new on-chain activity, with the daily average count of new addresses for Bitcoin and Ethereum increasing by 9.8% and 48.2%, respectively, compared to the previous month.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
