Bitcoin On Crypto Exchanges Reached Multi-Year Lows

Bitcoin on crypto exchanges reached a multi-year low with over 96,000 coins moving off the exchanges every month according to the data from Glassnode as we are reading more in today’s latest bitcoin news.

Bitcoin on crypto exchanges that is behind held there reached new lows and it is being held by accumulation addresses. These addresses buy but don’t sell which reduces the supply and creates a bigger upward pressure on the price. After the global COVID pandemic hit, there was a swtich from exchanges that experienced net inflows of BTC almost every month to watch the number of coins in exchange accounts get smaller.

With BTC net outflows averaging 96,200 coins per month for the past two years, the exchanges’ cumulative BTC balances hit multi-year lows and they fell to their lowest levels since August 2018. The bulk of the outflows is coming from a handful of platforms like Bittrex, Bitstamp, Binance, Coinbase, Kraken, and Gemini. The upshot of all this is that more BTC is heading away from the exchanges and into addresses that purchase BTC but don’t spend it. The accumulation addresses can belong to individuals but also to companies and custodians. The Luna Foundation Guard gathered $1.4 billion in BTC to back the algorithmic stablecoin and it goes under this category and so does Microstrategy.

The category isn’t all BTC whales. The so-called Shrimps who carry below -1 BTC balance, have been taking more of their shares of the coins in circulations since late January. In the last week of December, the balances in this decreased by almost $10 billion and the price then nestled between $49,000 and $50,000 while now it sits below $46,000. although increased HODLing should put some pressure on the price. It is best to not too much about it as net outflows are just two data points among most and the price picture can change dramatically by shifting the comparison dates.

Glassnode pointed out that the amount of BTC being accumulated every day is much higher than the number of coins being created. As such, the scarcity and nature of BTC can be returned to the foreground again.

As earlier reported, Bitcoin’s LN Labs raised $70 million and announced the launch of the Taro protocol that can bring transfers to the lightning network.