Exchange Deposits in Bitcoin Slide to Lowest Level in 3 Years

The number of bitcoin on-chain deposits has dropped sharply over the last six months, indicating a strong optimistic or “HODLing,” sentiment in the market. 

The seven-day average of the number of transfers to exchange addresses, or unique daily exchange deposits, fell to 23,986 on Jan. 1. That’s the lowest level since November 2016 and comes after topping out at 58,925 at the end of June 2019, according to crypto analytics firm Glassnode. The number has since inched up to 27,289 as of Feb. 4.

Notably, the count of deposits dropped by 60 percent in the second half of 2019 even as prices collapsed from $13,800 to $6,425. 

During violent price drops, investors usually move their coins to exchanges to sell them in the market. However, investors held onto their coins during the second half of 2019 despite the price slide. 

It indicates increased “HODLing,” a sign of strengthening belief in the long-term viability of the…