Goldman Sachs Reports: Bitcoin and Ether Supply on Exchanges Down 4% and 5.8%, respectively

Citing on-chain data, Goldman Sachs said in a report on Tuesday that bitcoin and ethereum supply on exchanges fell in June as increased regulation and criminality prompted holders to prefer self-custody, CoinDesk reported. The report said bitcoin supply on exchanges fell 4 percent to near December 2022 levels, the lowest level since November 2020 and just before the 2021 bull market began; ethereum supply slid 5.8 percent to the lowest level since May 2018. 

Goldman Sachs noted that bitcoin miners sent a record amount of BTC to exchanges in June as miners took advantage of bitcoin's strong performance. Total monthly inflows of bitcoin from miners to exchanges almost doubled from May to $99 million, the report said. As transaction fees returned to normal in June following network congestion in May, monthly address activity for Bitcoin and Ether rebounded, up 15.5 percent and 37.5 percent, respectively. Goldman Sachs noted that the average daily destruction of ethereum fell 65.1 percent sequentially and the average daily fee fell 63.3 percent sequentially. New on-chain activity also increased last month, the report said, with the average daily number of new addresses for Bitcoin and Ether up 9.8 percent and 48.2 percent from a month earlier.