2023-07-05 01:06:53
© Reuters. Sending Bitcoin to Exchanges Has Historic Drop, Shows CryptoQuant
CriptoFácil – The number of Bitcoins sent to cryptocurrency exchanges recorded the biggest drop in history, according to data from the company CryptoQuant. According to the company’s analysis, transfers to addresses associated with exchanges decreased in an unprecedented way, representing an 80% drop from October 2021 to June.
This drop exceeds the 78% observed between 2017 and 2018. It is worth mentioning that these data do not take into account the number of addresses that were transferred to custody, nor does it make a distinction between, for example, mining activity or retail sales.
This behavior of BTC holders can be interpreted as a bullish signal. After all, with the reduction of selling pressure, the price of Bitcoin can go up.
Generally, when investors transfer crypto assets to exchanges, it is with the intention of selling them. On the other hand, the accumulation of these assets outside these platforms suggests an intention to hold them in the long term.
Bitcoin nas exchanges
In addition to the drop in Bitcoin transfers, CryptoQuant also claims that there is a drop in Bitcoin reserves on exchanges, not just new deposits.
“Since March 2020, Bitcoin reserves on exchanges have dropped by more than 30%. This is another record, both in length and depth,” states CryptoQuant.
This is a phenomenon unheard of in the last 10 years. The drop spans over 1,200 days, marking this as the first period of steady decline in Bitcoin’s history on exchange platforms, the analysis firm concludes.
The company also points out that, generally, those who own Bitcoin tend to adopt the premise of “not your keys, not your coins”. This means that money deposited on exchanges no longer belongs to the original holder, a fact reinforced by cases like the FTX bankruptcy.
The company filed for judicial recovery after complaints of alleged misuse of user funds, resulting in the impossibility of withdrawals for those who had money on the platform.
Binance and Coinbase (NASDAQ:), on the other hand, have been accused by US authorities of alleged violations of federal law by selling certain tokens that the US Securities and Exchange Commission (SEC) qualifies as a security. This caused fears among users of a possible freezing of funds, but this did not happen.
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