According to Glassnode statistics, 450,000 Bitcoin (BTC) that were kept on an exchange or in a hot wallet have been transferred to cold storage throughout the course of 2022.
Black swan events have occurred in the market often during the last 12 months, and as a result, exchange reserves for about 550,000 BTC have been depleted. These reserves lost amounts in chunks. For instance, in December, Binance lost 90,000 BTC in seven days, FTX lost 70,000 BTC in two weeks, and in November, Coinbase lost 200,000 BTC in four days.
The exchanges had just under $2.8 million in BTC at the beginning of the year and finished up with around $2.25 million, a decline of almost 20%. Less than 12% of the entire Bitcoin supply is represented by the exchanges' current BTC reserves.
The supply of illiquid BTC was 14 million in January and over 15 million in December, according to records. This also suggests that 78% of the Bitcoin quantity in circulation is kept in cold storage.
