In May, a massive reduction in the total number of Bitcoins stored on centralized crypto exchanges was recorded. This became known thanks to the study of Glassnode. According to analysts, the total amount of bitcoins has decreased by more than 10% since mid-March.
Of course, one of the powerful drivers for dropping the flagship cryptocurrency was the collapse of March 12-13. Black Thursday negatively affected the Bitcoin market position and reputation: a 50% fall in prices caused panic among investors and traders, so many of them began to withdraw their funds from Bitcoin. As a result, the total volume of BTC, which is located on crypto exchanges, decreased from 14.1% to 12.5%.
Today, 2.3 million BTC is stored on exchanges. In the period from March 12 to today, about 300,000 BTC were withdrawn from leading crypto platforms.
Why are exchanges dropping flagship cryptocurrencies?
According to the study, such large players in the cryptocurrency market as BitMEX, Huobi, Bitfinex were involved in the drop of Bitcoin. Each of these crypto platforms carried out the withdrawal of about 100,000 BTC over the past 2 months. Many analysts are trying to understand why this happens because the Bitcoin halving was supposed to change the situation in the opposite direction.
In particular, cryptanalyst Journey suggested that it is possible that Bitcoin can be withdrawn from crypto exchanges due to the refusal of investors to futures and the growth of their interest in concluding OTC transactions.
Exchanges accumulate Ethereum
It’s a paradox, but while the flagship cryptocurrency in large volumes is withdrawn from cryptocurrency exchanges, Ethereum, on the contrary, increases its balance. According to the data, the number of ETH on crypto exchanges since March 2018 has grown more than 3 times, from 5.8 million to 18.6 million in two years.
At the time of writing, the amount of ETH held on exchanges is $4 billion.
This article is intended as a news item to inform our readers of various events and developments that affect, or that might in the future affect, the value of the cryptocurrency described above. The information contained herein is not intended to provide, and it does not provide, sufficient information to form the basis for an investment decision, and you should not rely on this information for that purpose.