New on-chain data suggests Bitcoin (BTC) investors are paying close attention to their funds amid the recent crypto crash and rising global economic turmoil.
According to the crypto analytics firm Glassnode, cryptocurrency traders are withdrawing their BTC from exchanges at a rapid rate and moving it to private wallets, bringing the amount of BTC on exchanges to their lowest levels in approximately eight months.
“Despite the volatility, Bitcoin holders appear to be withdrawing their funds from exchanges.
Outflow has been increasing daily since March 18. According to our labels, BTC exchange balances are the lowest they’ve been in ~8 months.”
There are a number of potential explanations for the mass exodus of BTC from exchanges. Traders may be:
- Choosing to maintain custody of their own assets without middlemen
- Deciding to hold on for the long term and cease trading
- Concerned about the liquidity of crypto exchanges amid the market downturn
The move coincides with a surge in the creation of new Bitcoin addresses.
The research team at Glassnode says the three-day moving average of new addresses jumped 11.7% in a 24-hour period between Wednesday and Thursday.
? #Bitcoin $BTC Number of New Addresses (3d MA) increased significantly in the last 24 hours.
Current value is 15,412.306 (up 11.7% from 13,803.542)
View metric:https://t.co/7WO8UHxK1q pic.twitter.com/0JrMyJLHfF
— glassnode alerts (@glassnodealerts) March 26, 2020
Crypto analyst and technical trader Scott Melker says he’s now watching legendary investor and crypto critic Warren Buffett to gauge when global markets have hit a bottom.
“In my conversation with [Morgan Creek Capital Management founder] Mark Yusko, we discussed when the market bottom would likely be in.
We both agreed that the most reliable signal will be when Warren Buffet deploys his 125b (roughly) dollars. Hasn’t happened yet.”
At time of publishing, Bitcoin bulls are now fighting to hold the psychological level of $6,000.
BTC is down 7.40% in the last 24 hours at $6,264, according to CoinMarketCap. Ethereum is down 6.48% at $129.89 and XRP is down 1.95% at $0.1708.
