Many traders are withdrawing from centralized exchanges as there are withdrawals of up to 2000 BTC per day. This is a suggestion of the accumulation of bitcoin markets. The quantity of Bitcoin held in centralized exchanges has been on a decline since May.
According to Glassnode’s Monday series the week on the chain, The number of Bitcoin in centralized exchanges has never been what it was in April, where BTC experienced an all-time high of $65k.
From the analysis, withdrawals from exchanges were expected because of the bull run. Glassnode suggests that the exits may either have gone to Grayscale GBTC Trust or institutions.
The situation was different from May when the BTC prices dropped as traders sent them to exchanges for liquidation. The current 14-day moving average has increased exchange outflows to 2k per day.
The report showed that a drop in exchange deposits affected on-chain fees leading to a 14%drop. This is from 17% in May.
On the flip side, on-chain fees associated with withdrawals increased from 3.7% to 5.4% this month.
The decline in exchange reserves coincides with an increased capital flow to decentralized finance protocols in the last two weeks.
According to DeFi Llama, the value of locked BTC increased by 21% from June 26, increasing from $92 billion to $111billion.
The move indicates that people are still keen on BTC. It may show that people prefer DeFi as opposed to centralized exchanges. DeFi has better offers with more returns comparatively.
It also shows that many people prefer to lock their savings or their BTC. This shows many BTC investors are long-term players.
Don’t worry, we hate spam too
one weekly digest, just the important stuff.
How about some social? Follow us on Twitter!