After the March market crash, the volumes of bitcoins stored on exchanges continue to rapidly decline, reaching the low of May 2019. This is stated in a new Glassnode report.
Since mid-March, the outflow has amounted to more than 320,000 BTC, which is more than 12%.
One version of what is happening isthat investors, in anticipation of market growth, withdraw funds to personal wallets. The growing number of bitcoin whales, as well as the continued accumulation of funds in wallets over the past two months, purportedly used for long-term storage, can speak in her favor.
However, the dynamics can be influenced byother factors. Glassnode analysts note an uneven distribution of the number of bitcoins withdrawn from exchanges. Some of them lost very significant amounts, while the balance of other exchanges remained the same or even increased.
The most active withdrawals are observed at Bitfinex (~ 133,000 BTC, or -66.6%), BitMEX (~ 105,000 BTC, or -35.6%) and Huobi (~ 97,000 BTC, or -24.6%) .
At the same time, the most popular exchange forCoinbase remains Bitcoin’s storage - since March “Black Thursday” its balances fell by only 0.2% to 968,000 BTC. Other popular trading platforms, such as Binance and Bitstamp, even slightly increased the number of BTC in wallets during the indicated period.
According to analysts, this may be due todecreased confidence in certain exchanges. For example, during a sharp decline in the market, BitMEX experienced disruptions in operation, because of which users could not respond in a timely manner to what was happening and lost money. This, however, does not explain why users did not transfer bitcoins to other exchanges.
In addition, some sites, including Huobi andBitfinex, began to experience an outflow of funds before the March collapse. Consequently, one cannot exclude a longer trend determined by other market factors, and not just bullish sentiment among traders. So, by mid-March, the balance of bitcoin wallets on exchanges has already fallen by more than 47% relative to the December 2018 highs.
Recall that at the same time in May, the aggregate open interest (OI) for bitcoin options updated its historical maximum at around $ 1.16 billion.