Cryptocurrency exchanges now hold nearly 1.89mln bitcoin, a drop from 2.22mln in May last year

The supply of bitcoin across all cryptocurrency exchanges has dropped to its lowest level since December 2017.

Bitcoin (BTC-USD) dropped 1.3 per cent to $26,779 on Monday while ether (ETH-USD) was 0.8 per cent lower at $1,806.

Over the last month, bitcoin’s price has fundamentally consolidated, lowering its value by only 2 per cent, as per Coingecko.

There has been a 14.87 per cent drop in the amount of Bitcoin held on all exchanges over the past year, as per data from Coinglass.

Cryptocurrency exchanges now hold nearly 1.89mln bitcoin, a drop from 2.22mln in May last year.

Ethereum reserves have declined to the same level seen in 2015, when the cryptocurrency debuted.

Inventors are moving cryptocurrencies off exchanges and into personal crypto wallets, suggesting a rising trend towards self-custody among traders.

The move also creates less liquid supply on exchanges, suggesting that a short term price increase could take place should demand for bitcoin or ether increase.

It comes as US president Joe Biden has stated he will not consent to a debt deal that safeguards “tax cheats and crypto traders”.

At a G7 meeting in Hiroshima, Japan, on 21 May, Biden called on Republican lawmakers to work towards an agreement in the ongoing debt ceiling discussions.

I am not going to agree to a deal that safeguards wealthy tax cheats and crypto traders while putting food support at risk for around a hundred — excuse me — around 1 million Americans, he stated.

The White House and Republican leaders are at present engaged in discussions about possibly stop this mechanism from applying to cryptocurrency transactions, as per the Washington Post.