The cryptocurrency market data compiler Glassnode reported that the number of bitcoins (BTC) on central exchanges has fallen to a 12-month low.

Currency reserves are shrinking at the height of the recent open interest in bitcoin futures, which indicates that many traders may be too large.

Less than 15% of bitcoins are held on exchanges
On June 24, Glassnode recorded a new annual decline in the number of BTCs held on exchanges, with more than 2,624 million BTC. Thus, the number of bitcoin currencies on the central exchange since February of this year fell by 10%.

The fall of coins on the stock exchange occurred amid growing open interest, or OI, in Bitcoin futures, when Glassnode reached a new three-month high for OI on Bitfinex on the same day.

Bitcoin OI, an ordinary stock exchange on leading futures exchanges, for the first time in May exceeded $ 1 billion, and then quickly grew another 50% to $ 1.5 billion earlier this month.

The increase was partly due to increased activity on the BTC markets on the Chicago Mercantile Exchange, which in May grew by 1000%.

Does DeFi withdraw currency from exchanges?
However, the combination of expansion with open interest rates and lower reserves on the stock exchanges indicates that many traders may have high support – while OI continues to expand, despite an obvious decrease in available security.

The growing popularity of decentralized financing protocols may also have contributed to a reduction in the number of coins held on exchanges. According to DeFi Pulse, the total value of closed assets for DeFi projects since mid-January has more than doubled – from $ 700 to $ 1.6 billion.

Investors using artificial bitcoin to access Ethereum-based DeFi applications can use futures to hedge their underlying assets, as speculators may seek to stabilize the value of their assets on paper in the face of a recent random merger in the BTC markets.

Source: CoinTelegraph

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