The number of Bitcoin exchange deposits this April has hit the lowest point since August 2016. As we can see in the latest crypto news, there has been a trend towards Bitcoin holders moving their assets away from the exchanges. In fact, some exchanges were hit particularly hard – the amount of BTC held by BitMEX and Bitfinex has dropped significantly in the last few weeks.
However, while the amount of BTC held on exchanges decreased overall, it has not reverted as far back in history as the number of transfers in Bitcoin to exchanges. The current level of this is equivalent to the middle of 2019.
The Bitcoin exchange deposits are dropping, and the basic explanation of this is the fact that the number of exchange withdrawals has also decreased – but on a more gradual pace. Another potential reason why this happened is that while the number of transfers to exchanges dropped, the volume of Bitcoin inflows to exchanges has stayed at a high level. This shows that the average size of a Bitcoin deposit has overall increased.
In the Bitcoin news now, we can see that this trend won’t reverse anytime soon since there is a general expectation that the upcoming halving of the Bitcoin block reward will have a positive impact on the price. Beause of this, most traders and investors may prefer to keep their crypto holdings off the exchanges for better safekeeping.
Meanwhile, the price of Bitcoin (BTC) today has went above $7,000 again, proving that some bulls are still here. Similarly to BTC which rose by 2% this morning, we could see many other altcoins posting gains. The leader in the top 5 coins is Ethereum (ETH), which managed to add 6.60% to its price and position itself right near the $170 mark.
Positive price action in the altcoin news sustained and was led by coins such as EOS (EOS) which rose by 7.15% this morning to a new price of $2.64. There are no major losers in the top 20 – the only coins that dropped minimally include USD Coin (USDC), UNUS SED LEO (LEO) and Huobi Token (HT), but their declines were minimal and less than 1%.
The total cryptocurrency market cap is above the $200 billion mark again.
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