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  • Tue. Dec 6th, 2022

Bitcoin exchange outflows hit historic levels as ‘tourists’ exit

ByNdasi Tata

Jul 7, 2022
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Bitcoin whales have withdrawn over 8 million BTC from exchanges to their own wallets, with Shrimps also putting a significant amount of coins into illiquid supply.

Most investors are under water as a result of the recent market sell-off, but rather than sell, on-chain data shows hodlers are digging in. This even as the market gets rid of weak hands with prices hovering at the crucial $20,000 level after dipping to lows near $17,600.

According to on-chain analytics platform Glassnode, Bitcoin investors last week continued to pull their holdings off exchanges,

Per Glassnode, the risk-off sentiment has seen exchange outflows soar to -151k/month in June. It’s the highest rate at which investors have taken BTC off exchanges, with hodlers retreating to the safety of offline wallets as they look to ride the crypto winter.

Exchange reserves fall to 2018 levels

According to Glassnode, aggregate exchange reserves have fallen remarkably over the past year, with continued large scale withdrawals pushing exchange balances to levels last reached in July 2018.

Overall balance on exchanges have seen an aggregate outflow of -750k BTC since March 2020. The last three months alone have seen some 142.5k BTC in outflows alone, a remarkable 18.8% of the total,” Glassnode wrote in its weekly report.

As exchange net reserves dwindle, Bitcoin’s illiquid supply has increased as investors relocate their coins to wallets. On-chain data shows illiquid supply has jumped by over 223,000 BTC in July, while whales alone have withdrawn over 8.69 million BTC from exchanges Glassnode tracks.

Per the platform, exchange outflows have increased since April to hit 140 BTC/month in June.

Bitcoin ‘tourists’ annihilated

Bitcoin price dropped to lows of $17,600 in June, with intensified selling after the collapse of LUNA and subsequent rot hitting several crypto companies. Combined with broader market negativity, selling activity had the most impact on “market tourists” – the weak hands.

Bitcoin has locked in one of the worst monthly price performances in history, with prices trading down -37.9% in June. Bitcoin has seen a near complete expulsion of market tourists, leaving the resolve of HODLers as the last line standing,” the analytics platform noted in its report.

But the percentage of BTC supply in loss is around 48.1% for all coins held off exchanges.

The post Bitcoin exchange outflows hit historic levels as ‘tourists’ exit appeared first on CoinJournal.

Ndasi Tata

Ndasi Tata is a Cameroonian-born Bitcoin entrepreneur and former state journalist. He earned an M.Sc from the University of Nicosia in Cyprus in Blockchain and Digital Currency. He uses a variety of social media channels to promote his ideas and projects , and he's a major proponent of Bitcoin in Africa.

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