According to on-chain data, in the recent bitcoin downtrend, some investors are moving the bitcoins they bought out of the cryptocurrency exchange.
According to Glassnode, a blockchain data company, the number of bitcoins net outflow from global cryptocurrency exchanges for 24 hours until 12 p.m. on the 25th of Coordinated Universal Time was recorded as the highest this year. During this day, the price of bitcoin plunged by more than 10%, from $57,833 to around $50,000.
Bitcoin analyst Willie Udo said on his Twitter on the 25th, “Today, the largest number of bitcoins left the exchange in 2021.”
Since Bitcoin, which normally leaves the exchange, cannot be sold, it acts as a long-term good news for the price. On the other hand, since bitcoins in the exchange can be sold, the price is adversely affected.
The picture above is the data on the monthly Bitcoin flow change trend of Glassnode. According to this, the supply of bitcoin flow has been decreasing to a level that has not been seen in the past three years. This is likely to be related to the rise of Bitcoin as an inflation countermeasure over the past year as central banks around the world have released trillions of dollars in stimulus packages for Corona 19.
In a newsletter earlier this month, Glassnode said, “A long-term holding pattern is appearing among cryptocurrency holders,” and “It is judged that the demand for bitcoin is still significant among long-term investors.”
Article in English: Dong-Hwan Kim, Translation and Editing of CoinDesk Korea
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