Cryptocurrencies

In search of 20,000 bitcoins (BTC) evaporated from Exchanges – Cryptocurrencies

Exchanges are the place par excellence where daily bitcoin transactions take place, whether it is a deposit or a withdrawal. However, since the fall in asset prices recorded in the middle of last March, many users are withdrawing their assets from accounts. However, the exodus has never been greater than the one that took place on July 8. This day will have recorded the record for the net number of bitcoins withdrawn daily from exchanges. A situation that analysts are trying to explain as best they can.


A movement heralding a rise in the price of Bitcoin?

At the end of this special day, the difference between the number of BTC withdrawn and the one deposited was 20,660 BTC. An unusual differential which must have plunged the platforms into perplexity, heightened by a touch of concern. Although this reflects a massive exodus of assets held on exchanges, some analysts prefer to see the sign of an upcoming price increase.

A disruption in the strength of Bitcoin

Indeed, such a general movement had already been observed in the past. And it was followed by an 88% price hike … However, the equivalent amount – over $ 214 million in assets – withdrawn on July 8, despite everything, seems insufficient to justify such a trend. This did not prevent some specialists from establishing a link between the withdrawals of funds from exchange users and the future price of Bitcoin.

Pub

Indeed, logic would want a user to keep his assets on an exchange if he plans to sell them, even partially in the near future. Otherwise, he will opt for a transfer of funds to a cold wallet, if he anticipates a rise in prices in the longer term. This would allow it to benefit from better conservation over time, far from the greed of hackers and the inconsistencies of platforms. It is thus this second scenario that is put forward to try to justify the current movements of withdrawals. Considering that the demand remains the same on the market, the price will tend to rise as bitcoins leave the available supply on short-term exchanges.

Coinbase leads the way

Except for Coinbase, the other exchanges have rather recorded a slight increase in deposits. Coinbase has indeed known on its own a net daily balance of – 20,787 BTC, which is more than all the exchanges combined as data from Glassnode. However, this impressive total hides a mixed reality. In details, paradoxically there were almost a thousand more deposits than there were withdrawals made on Coinbase. All transactions combined equivalent to a negative exit, this would mean that the average amount of withdrawals was greater than that of deposits. There would therefore be large exits made by customers who disrupted this average amount of withdrawals.

Pub

While the hypothesis of a future price hike is fairly well received by the community in the context of these massive Bitcoin withdrawals, no one knows the exact cause. The trend continues to be followed by some customers who are gradually emptying their accounts.

Related Articles

Back to top button