Bitcoin users are withdrawing their bitcoins from exchanges at a record speed. According to market intelligence firm Glassnode, this may be a bullish signal.
The number of users continuing to withdraw bitcoins from the exchange set a record, and the current bitcoin price is approaching $ 10,000.
Liesl Eichhols, a strategist at blockchain research company Glassnode, described this trend in Glassnode’s latest weekly report. The report pointed out that based on the data collected by Galssnode, Bitcoin’s overall market health and investor sentiment are in a favorable position.
Although not overly optimistic, the market still has optimism. The price of Bitcoin also reflects this, and its price continues to approach 10,000 US dollars. But this optimism is also reflected in another data: the number of Bitcoin withdrawals from the exchange.
According to Glassnode, users are taking out their bitcoins from exchanges in droves. Since the crash of Bitcoin on March 12, bitcoin holders have been withdrawing from the exchange. This withdrawal boom has become “the largest and longest-lasting bitcoin exchange balance decline trend in bitcoin history.” .
Glassnode speculates that considering the trend of users withdrawing from the exchange started in the first few weeks of Bitcoin halving and continued after the halving, this may be due to the bullish sentiment of Bitcoin halving-last week, Bitcoin The halving every four years has caused considerable noise in the encryption field.
The report said: “One possible explanation for this (exchange balance) decline is that investors are withdrawing funds from the exchange and storing Bitcoin cold, which means looking forward to a longer-term prospect.”
Glassnode wrote in the report that the data shows that the holdings of small accounts are rising (the balance of the Bitcoin whale wallet is also rising), confirming this view.
But there is another factor that can explain why bitcoin holders transfer funds from centralized exchanges.
During the “Black Thursday” market crash on March 12, the Seychelles-based bitcoin exchange BitMEX experienced a technical failure, which may be one of the reasons for the historical plunge of Bitcoin during the macro market sell-off. BitMEX used to dominate the trading place of bitcoin futures. After “Black Thursday”, the main market share of BitMEX bitcoin futures was taken away by competitors, and the current withdrawal of users from the exchange may trigger a trend of distrust of the exchange. Exchanges such as BitMEX have already caused such mistrust among Bitcoin investors.
On the contrary, bitcoin holders may choose to believe more in their own bitcoin-this is also the original purpose of bitcoin.
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