- According to the data, Bitcoin (BTC) is being transferred from crypto exchanges to the wallets of long-term investors.
- The company states that similar accumulation periods have come before other Bitcoin bull market cycles.
- Glassnode’s data also shows that Bitcoin’s illiquid supply has reached an all-time high (ATH).
According to recent data, Bitcoin investors are withdrawing their BTC from exchanges and the BTC balance on exchanges is at its lowest level in the past 5 years.
Investors Are Withdrawing BTC from Exchanges to Wallets
According to the data, Bitcoin (BTC) is being transferred from crypto exchanges to the wallets of long-term investors. Glassnode says that a stable BTC outflow rate from exchanges indicates a significant accumulation wave by HODLers or entities with little selling history;
“BTC supply continues to move out of exchanges, miners, and whale wallets and into the wallets of HODLers at a healthy pace.”
The company states that similar accumulation periods have come before other Bitcoin bull market cycles.
Glassnode’s data also shows that Bitcoin’s illiquid supply has reached an all-time high (ATH). Illiquid supply of Bitcoin is a term used to refer to the amount of BTC held by entities that historically hold at least 75% of their coins. Glassnode stated the following;
“This observation supports the divergence between coin held in wallets with almost no history of spending and coin held on exchanges. The illiquid supply reached a new ATH this week at 15.2M BTC, while exchange balances dropped to their lowest level since January 2018 at 2.3M BTC.”
Bitcoin’s next halving event occurs every four years and is estimated to take place on April 14th of next year. During this event, the amount of new BTC given to miners per block will be reduced from 6.25 Bitcoin to 3.125 Bitcoin.
