© Reuters

Crypto analysts on X (the social media platform formerly known as Twitter) and in YouTube interviews have been abuzz with talk about the trend of leaving centralized exchanges.

On Aug. 29, the quantity of Bitcoin (BTC) held within exchanges saw a decline, reaching its lowest point since January 2018. While various factors might underlie this movement, experts analyzing blockchain data often interpret the shift as a positive indicator. Traders are now questioning what might have been causing Bitcoin’s inability to break above $31,000 since this price action doesn’t align with their view that fewer coins on exchanges is bullish for the BTC price.

Bitcoin aggregate exchange net position change, in BTC. Source: Glassnode
Google (NASDAQ:) Trend searches for “buy Bitcoin” worldwide. Source: Google
Bitcoin adjusted daily volume, USD. Source: Messari and Kaiko