Blockchain analytics firm Glassnode reveals that Bitcoin’s supply on crypto exchanges is in a sustained downtrend since early 2020 as users withdraw BTC at a staggering rate.
Glassnode tells its 368,300 Twitter followers that 617,000 BTC, currently worth $37.97 billion, have moved out of crypto exchanges in a span of 20 months.
The crypto insights firm notes that the Bitcoin balance on exchanges has plunged from 3.09 million BTC ($190.01 billion) in February 2020 to 2.47 million BTC ($152.02 billion) in October 2021, marking a 20% decrease in less than two years.
“Bitcoin balance held on exchanges has continued to decline this week.
Balances have fallen to 2.47 million BTC, returning to levels last seen in Aug 2018.
Since Feb 2020, the average rate of outflow has been 30,850 BTC per month.”
Glassnode is also keeping a close eye on the Bitcoin exchange net position change metric, which tracks the 30-day change of BTC’s supply held in the wallets of crypto exchanges. According to Glassnode, outflows have been persistent throughout 2021 except for the months of May, June and July.
“Current outflows are around 22,000 ($1.35 billion) BTC per month or around 71% of the long-term average noted above (30,850 BTC).”
Looking at long-term holders (LTH), or entities that have kept their BTC dormant for at least five months, the crypto analytics firm says the investor cohort has accumulated a whopping $148.95 billion worth of Bitcoin over the last seven months.
“During an extraordinary accumulation period since March, LTHs added 2.42 million BTC to wallets.”Don't Miss a Beat – Subscribe to get crypto email alerts delivered directly to your inbox
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