The number of bitcoins on cryptocurrency exchanges has been steadily falling since May. According to analysts, an average of 2,000 BTC is withdrawn from trading platforms every day, or about $ 63 million at the current rate .
In general, the reserves of the cryptocurrency on the trading floors dropped to their April value, when the value of the first coin fluctuated around 60 thousand dollars. According to Glassnode experts, the downward trend in reserves may indicate the accumulation of BTC, that is, now investors are gradually accumulating crypto in anticipation of its growth.
By tradition, let’s start with a description of the current market situation. Today, Bitcoin has dropped noticeably to a local bottom at $ 31,650, while over the past day it has been at $ 33,340. The fall of the main cryptocurrency traditionally pulled along with altcoins, which also showed a decline.
15 minute Bitcoin chart
This means that the correction of the coin market, which started in the spring of 2021, is still ongoing. Accordingly, novice players are afraid to get involved with the industry, which is noticeable by the activity of addresses in the blockchain.
For example, 212 thousand transactions were carried out on the Bitcoin network yesterday. For comparison: this year’s peak was recorded on January 10th. Then there were 366 thousand transfers.
The number of transactions in the Bitcoin network
The number of active addresses on the network has also dropped in recent months. Yesterday there were 789 thousand of them, although in mid-May the figure was 1.23 million.
The number of active addresses in the Bitcoin network
A similar situation has developed with the number of new addresses in the blockchain. The indicator lags behind almost twice the peak values this year.
The number of new addresses in the Bitcoin network
This means that mass investors are in no hurry to interact with the blockchain. At the same time, more experienced players not only buy cryptocurrency, but also rush to withdraw it to third-party wallets. Note that this is usually done for long-term storage of coins.
What will happen to Bitcoin next?
The gradual decline in cryptocurrency reserves of exchanges has become one of the hallmarks of the current bullish trend, according to a new report from Glassnode. Most of the coins went to the Grayscale Bitcoin Trust, while others ended up in the wallets of individual and large investors. However, when the price of BTC plummeted in May, this trend was reversed – many cryptocurrency enthusiasts rushed their bitcoins to exchanges in order to sell coins to minimize losses from the fall.
A noticeable outflow of bitcoins from cryptocurrency exchanges started on June 22. At the same time, this figure is still higher than the minimum in 2021. During the market collapse in May, investors brought 140 thousand BTC to the platforms, compared with the local minimum in April.
Since then, the exchange has left 40 thousand coins, or 28 percent of those that were opened the day before. This means that in order to reach the previous level of «deficit» of cryptocurrency on exchanges, its owners need to draw a lot of conclusions.
Bitcoin balance of cryptocurrency exchanges
Here is a quote from analysts in which they share what is happening in the industry. The replica is provided by Cointelegraph.
Based on the 14-day moving average over the past two weeks, in particular, there has been a more positive trend in the outflow of exchange reserves at a rate of about 2,000 BTC per day.
Cryptocurrency market again seeks outflow of cryptocurrencies from exchanges
Analysts also note that the share of on-chain transaction fees represented by exchange-traded deposits fell to 14 percent last week, after a brief peak of around 17 percent in May. Withdrawal fees have skyrocketed from 3.7 percent to 5.4 percent this month, indicating a growing preference for crypto hoarding.
While many are counting the losses from the spring collapse of the cryptocurrency market, one category of active participants in the cryptosphere is steadily making a profit. According to blockchain analysts, digital asset ransomware scammers have «earned» more than $ 33 million since the beginning of this year. It is noteworthy that this figure could rise to at least $ 100 million if the hacker group REvil begins to receive ransoms from more than 200 American firms it attacked.
Rating of hacker groups by the size of stolen funds
By the way, REvil itself received $ 11.3 million from the aforementioned amount of the total «earnings» of all hackers, according to Decrypt. Criminals have achieved great success – according to the Ramsomwhere platform, they have the second largest amount of stolen funds among all hacker organizations .
Nevertheless, the prospects and advantages of Bitcoin in the eyes of many investors are very great – they continue to accumulate cryptocurrency, even despite the flow of negative news. As you know, the crypto market has a tendency to constant long-term growth, so that even after a severe correction, Bitcoin will certainly continue to delight with new highs.
We believe that such withdrawals of BTC will not lead to a tangible shortage of the main cryptocurrency on the exchanges, since it is always available for transactions on large platforms. However, this trend clearly demonstrates the faith of large experienced investors in the potential of Bitcoin in the future. Accordingly, analysts’ predictions regarding the resumption of growth in the cryptocurrency market at the end of 2021 may well come true – at least this is indicated by the interest of large companies and the periodic demonstration of the power of coins, which still show a desire to increase in price.
