Bitcoin Held on Crypto Exchanges Reaches “Multi-Year Lows”
According to Glassnode’s analysis, over 96,000 bitcoins (BTC) leave exchanges every month.
After the worldwide COVID-19 pandemic began in March 2020, something remarkable happened. One of them was a transition from crypto exchanges seeing net Bitcoin inflows practically every month to frequently seeing the quantity of BTC in exchange accounts decline.
According to a research by crypto analytics firm Glassnode, with Bitcoin net outflows averaging 96,200 coins each month for the previous two years, exchanges’ total Bitcoin holdings have touched “multi-year lows,” They’ve dropped to their lowest point since August 2018.
The majority of recent outflows have been from Binance, Bitstamp, Bittrex, Coinbase, Gemini, and Kraken, to name a few.
According to Glassnode, as a result of all of this, more BTC is being moved away from exchanges and into addresses that buy Bitcoin on a regular basis but don’t spend it—in other words, HODLers.
Individuals, corporations, and custodians can all have these “accumulation addresses” This includes the Luna Foundation Guard, which has amassed $1.4 billion in Bitcoin to support their algorithmic stablecoin, as well as MicroStrategy subsidiary MacroStrategy.
However, the category does not include all Bitcoin whales. Since late January, so-called shrimps with sub-1 BTC balances have been taking in more than their fair share of the coins in circulation.
According to Glassnode, the balances in such accumulating addresses—both whales and shrimps, and everyone in between—have risen by 217,000 BTC (almost $10 billion) since the first week of December. The price was between $49,000 and $50,000 at the time, and it is now just around $46,000.
Despite the fact that additional HODLing should create upward pressure on the price, the price has fallen throughout this time. Net withdrawals and accumulation are simply two data points among many (including the amount of money individuals feel confidence investing amid rising interest rates and consumer prices), and the pricing picture can alter dramatically by merely shifting comparison dates.
Nonetheless, as Glassnode points out, the quantity of Bitcoin accumulated each day much outnumbers the amount of new BTC generated. As a result, “the scarcity and pristine nature of Bitcoin as collateral may well be returning to the foreground once again.” according to the report.
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Patrick
CoinCu News
Author
Bitcoin
Bitcoin Held on Crypto Exchanges Reaches “Multi-Year Lows”
According to Glassnode’s analysis, over 96,000 bitcoins (BTC) leave exchanges every month.
After the worldwide COVID-19 pandemic began in March 2020, something remarkable happened. One of them was a transition from crypto exchanges seeing net Bitcoin inflows practically every month to frequently seeing the quantity of BTC in exchange accounts decline.
According to a research by crypto analytics firm Glassnode, with Bitcoin net outflows averaging 96,200 coins each month for the previous two years, exchanges’ total Bitcoin holdings have touched “multi-year lows,” They’ve dropped to their lowest point since August 2018.
The majority of recent outflows have been from Binance, Bitstamp, Bittrex, Coinbase, Gemini, and Kraken, to name a few.
According to Glassnode, as a result of all of this, more BTC is being moved away from exchanges and into addresses that buy Bitcoin on a regular basis but don’t spend it—in other words, HODLers.
Individuals, corporations, and custodians can all have these “accumulation addresses” This includes the Luna Foundation Guard, which has amassed $1.4 billion in Bitcoin to support their algorithmic stablecoin, as well as MicroStrategy subsidiary MacroStrategy.
However, the category does not include all Bitcoin whales. Since late January, so-called shrimps with sub-1 BTC balances have been taking in more than their fair share of the coins in circulation.
According to Glassnode, the balances in such accumulating addresses—both whales and shrimps, and everyone in between—have risen by 217,000 BTC (almost $10 billion) since the first week of December. The price was between $49,000 and $50,000 at the time, and it is now just around $46,000.
Despite the fact that additional HODLing should create upward pressure on the price, the price has fallen throughout this time. Net withdrawals and accumulation are simply two data points among many (including the amount of money individuals feel confidence investing amid rising interest rates and consumer prices), and the pricing picture can alter dramatically by merely shifting comparison dates.
Nonetheless, as Glassnode points out, the quantity of Bitcoin accumulated each day much outnumbers the amount of new BTC generated. As a result, “the scarcity and pristine nature of Bitcoin as collateral may well be returning to the foreground once again.” according to the report.
Join CoinCu Telegram to keep track of news: https://t.me/coincunews
Follow CoinCu Youtube Channel | Follow CoinCu Facebook page
Patrick
CoinCu News
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