Bitcoin (BTC) exchange deposits have reached its lowest point since August 2017. Users are starting to withdraw their Bitcoin from exchanges, and many large exchanges are losing a significant share.
16 April, 2020 | AtoZ Markets – As the U.S. economy is sinking because of Coronavirus pandemic, BTC recently recovered almost 50% of the recent drawdown from $4000 area. But, Bitcoin has been struggling after the price broke below $7000 area last week. The price of Bitcoin (BTC) has dropped to its lowest level in two weeks, at $ 6,486 in the past 24 hours. The slight correction occurred at the close of the day. The price was most of the day between 6,750 and 6,650 dollars. However, the decline should not be a surprise, as a pattern of daily lower lows has been in play since 10 April.
BTC Exchange Deposits Drops
Glassnode reports a decline in the number of Bitcoin exchanges deposits in the past three years. On 13 April, it hit a new record low – 777,330. Previous 3-year low of 794.915 was observed on 02 August 2017.
Recently, there has been a trend of Bitcoin holders to move their assets out of the exchanges. The amount of Bitcoin held by BitMex and Bitfinex has decreased significantly in recent weeks. Users withdraw 36% of Bitcoin from Bitmex after 12 March. Recent data released by Glassnode indicates that investors have actively moved their BTC. Crypto exchanges seem to be losing their status as the most popular storage locations for crypto.
The overall holdings of all exchanges are declining, but still at the level of mid-2019. The number of exchanges withdrawals has also decreased along with the number of deposits. However, the volume of Bitcoin inflows to exchanges has remained at a relatively high level. It indicates that the average size of a Bitcoin deposit has increased.
It seems unlikely that the latest trend will reverse anytime soon. The next halving of Bitcoin block reward may have a positive impact on the price. The upcoming Bitcoin halving will take place in less than a month (expected date 12 May). Thus, most traders and investors may prefer to keep their assets off of the exchanges for better safekeeping.
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