Bitcoin outflow from centralized exchanges rise to 100K per month

Bitcoin outflow from centralized exchanges rise to 100K per month
As if the latest fluctuations weren’t surprising, Bitcoin’s outflows from centralized institutions and exchanges have risen to their highest year-to-date, accounting for roughly 40, 000 BTC withdrawals in the last seven days.


According to data from the August 2 report The Week On-Chain from Glassnode, BTC outflow has accelerated to a level exceeding 100,000 BTC monthly for the third time since it rose so high in September 2019. The analytics provider has also estimated that only 13.2 per cent of the total BTC in circulation is presently held on exchanges, making it a new low in the year 2021. The report added that it represents an almost complete retracement of its huge inflow volume that was observed in the May sell-off.


BTC outflows started surging close to 150,000 BTC per month by the end of April 2020, soon after the violent “Black Thursday” crash that witnessed crypto prices tumble by over 50 per cent. This happened immediately within the two days following the then-US President Trump’s announcement of a travel ban between the U.S. and Europe during March 2020 when the coronavirus outbreak intensified. Despite the massive crash, Bitcoin had retreated by 150 per cent by May end, driving colossal accumulation.


Subsequently, Bitcoin’s outflows again came to nearly 150,000 BTC per month during November 2020 as it rose to test its maximum price, which was a record back then, of $20,000, with BTC rallying into record-breaking highs the very next month.


The report by Glassnode has noted divergent trends between Binance and Coinbase throughout 2021, where Binance has received an enormous amount of BTC and Coinbase experienced several considerable outflows. 


However, Binance’s reserves are currently declining as 37,500 BTC (approximately $1.5 billion) has exited the crypto exchange in the last week. Coinbase balances were, for the most part in June, steady. The exchange received 30,000 BTC in mid-July, and 31,000 BTC was withdrawn from Binance in this week. 


Gauging people’s sentiments, Glassnode referred to its “Liveliness Metric” for identifying accumulation trends. Liveliness metric measures the ratio of the total coin days destroyed and the sum of all coin days created to date. Currently, it indicates a greater trend of accumulation after May’s immediate sell-off.


The Week On Chain concluded the report revealing that HODLing and accumulation are at present the dominant trend in the on-chain market.


Stay in the Loop

Get the daily email from CryptoNews that makes reading the news actually enjoyable. Join our mailing list to stay in the loop to stay informed, for free.

Latest stories

- Advertisement - spot_img

You might also like...