[Analysis] "Decrease in Bitcoin Deposit Addresses... Signal of Growing Confidence in Long-Term Holding"

The number of Bitcoin (BTC) exchange deposit addresses has been steadily decreasing. This shows that investors' confidence in long-term holding has increased.

On the 24th (local time), Darkfost, an analyst at CryptoQuant, assessed, "In the long term, these changes could further strengthen BTC's role as a 'store of value.'"

The change in the number of BTC exchange deposit addresses began in earnest after the 2021 cycle. From 2015 to 2021, the number of addresses depositing Bitcoin to exchanges steadily increased, recording an annual average of 180,000, but this trend was completely reversed afterwards and has not recovered since. Over the past ten years, the average number of deposit addresses was about 90,000, the 30-day moving average was 48,000, and on a daily basis, it has decreased to 37,000.

There are three main reasons for this change. First, with the launch of ETFs, it has become possible to invest in price increases without directly holding BTC. In addition, in this bull market, individual investor participation was relatively low, so the number of deposit addresses naturally decreased. The growing tendency for more investors and companies to choose long-term holding strategies for savings or financial reserves over short-term trading also had an impact.

The analyst noted, "These changes have occurred gradually over time and show that Bitcoin's identity and role in the market are evolving."