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According to new data from CryptoRank, a mere 6% of the total Bitcoin supply is still circulating on exchange wallets, Cointelegraph reports.


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The latest figure — 6% — is the lowest recorded this year.

However, the low supply has been an ongoing trend, linked to Bitcoin's block reward being divided in two in 2020. In October 2020, exchange wallets already had only 9.5% of Bitcoin's supply, and that number was further reduced to 7.3% this past July.

The American crypto exchange platform Coinbase has also seen its place drop dramatically. While it once held more Bitcoin than all other exchanges combined, it now only holds 40.65% compared to a previous figure of 50.52%.

This comes amid news this week that the Bitcoin network hash rate is nearly at an all-time high, near a historic 200 exahashes per second.

According to the on-chain analytics company Glassnode, data shows that around 100,000 Bitcoin a month are moving from a "liquid" to an "illiquid" state. According to the company, illiquid coins refer to "those [which are] sent to an address with little history of spending, generally associated with investor accumulation, and bull market buyers."

Many crypto companies and investors put their Bitcoin on exchanges, meaning that the "illiquidity" of Bitcoin may be lower than thought, according to Cointelegraph.  

Bitcoin's hash rate has rebounded from an aggressive Chinese crackdown, and many experts say it is likely stronger than before.