Since late May, the number of Bitcoins stored on centralized exchanges has steadily decreased, about 2,000 BTC (approximately $66 million at current rates) leaving each day.
The network hashrate has dropped by 55 percent because of China’s crackdown on Bitcoin mining, which saw BTC mines shut down across the country and companies relocated offshore.
The relentless depletion of exchange coin reserves was a prominent theme during the bull run leading up to this peak. According to Glassnode, much of this BTC was sent to the Grayscale GBTC Trust or accumulated by institutions, resulting in a “continuous net outflow from exchanges.
Bitcoin price dump in May
According to Glassnode’s July 12 Week On-Chain report, Bitcoin reserves on centralized exchanges have dropped to levels last seen in April, when BTC hit an all-time high of over $65,000. When Bitcoin prices fell in May, however, this trend reversed, with coins being delivered to exchanges for liquidation.
The 50% drop in Bitcoin’s price from just shy of $60,000 on May 10 to a low of $30,000 during the worst phase of the May 19 sell-off has many speculating that the 2021 bull market has reached its peak. As outflows rise, the net transfer volume has moved back into negative territory.
The live CoinMarketCap ranking of bitcoin is #1. Currently, BTC value is $33,243.39 with the change of 3.00%. Coin’s trading volume in the last 24 hours is $22,574,735,253 along with the market cap of $623,352,117,260. At the time of writing its circulating, maximum and total supply is 18,755,062.00 BTC, 21,000,000 and 18,755,062, respectively.
Since June 26, the total value locked has increased by 21%, rising from $92 billion to $111 billion.
Following a brief peak of around 17 percent in May, the proportion of on-chain transaction costs represented by exchange deposits fell to 14 percent dominance this week, according to the research.
Withdrawal on-chain fee jumped from 3.7 percent to 5.4 percent this month, indicating a growing preference for accumulation over sales, according to the report. Over the last fortnight, the drop in exchange reserves appears to have corresponded with an increase in capital flows to decentralized finance protocols.
Bitcoin (BTC) is starting a new week in familiar territory: key support has returned, but bulls have yet to break out and as the Bitcoin (BTC) hashrate begins to improve, traders are now focusing on how this week’s unlocking of more than $550 million worth of Grayscale’s GBTC shares will affect the price.
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