TL;DR Breakdown:
- Bitcoin balance on exchanges has returned to the lowest level in July 2018 amid massive outflows.
- Active users on the Bitcoin network have risen by 30 percent to 325k users.
Cryptopolitan recently reported a growing level of accumulation amongst deep-pocketed Bitcoin investors, which was subsequently drying up the Bitcoin balance on exchanges. Today, however, BTC balance on exchanges has dropped further to 2018 levels, following a massive number of outflows recorded in just the past few days.
Massive BTC outflow is usually regarded as a bullish sign, as it results in more scarcity of BTC.
Bitcoin balance on exchanges shrinks to July 2018 level
Bitcoin balance on all exchanges significantly dropped within the past days, reaching the lowest level last seen since July 2018, according to data shared by a crypto analyst, Will Clemente. He pointed out there have been massive outflows; at least 63.7k Bitcoin was moved off from crypto exchanges yesterday.
It remains unknown whether the aforementioned transactions are internal transfers from exchanges. However, outflows are usually considered to be bullish, especially if done by BTC investors, as it shows investors are interested in HODLing.
To sum it all, a gigantic amount of Bitcoin has been moving off exchanges since this week. Within the past 24 hours, more than $7 billion worth of BTC left exchanges, according to Glassnode.
Bitcoin active users spikes by 30%
In a separate report, Glassnode confirmed a wake of active users on the Bitcoin network. Last week, Bitcoin activities surged by about 30 percent, from 250k active users to 325k active users. The last time such activity was recorded was during Q2 2020 when BTC was still trading around $11,000.
The growing activities on the network coincide with the resurgence in the price of Bitcoin. At press time, Bitcoin was trading at $39,681.
