As Bitcoin price movement battles for all-time highs, it is departing exchanges at the fastest rate in years.James Van Straten, a research and statistics analyst at the cryptocurrency insights company CryptoSlate, reported multibillion-dollar Bitcoin withdrawals in a post on X on March 3.
Although the majority of investors may not have jumped back into cryptocurrency just yet, Bitcoin exchanges are steadily running out of BTC reserves.Van Straten uploaded statistics from the on-chain analytics company Glassnode, which showed that withdrawals totaled around $2 billion on March 1 alone.
“I don’t think I’ve quite seen anything like this before,” he commented.
“All in all on the Friday, just over $2.3B worth of Bitcoin left exchanges. One of the biggest withdrawals in over 5 years.”
Glassnode itself appears to show daily BTC outflows roughly equalling June 28–29, 2021, which combined to see record withdrawals.
Van Straten highlighted the significance of the US spot Bitcoin exchange-traded funds (ETFs), with the exception of the $200 million or more that were transferred to Coinbase Pro, the custodian.He went on, “Binance saw roughly $400M, and seen fairly big outflows for the past few days.”
“Coinbase saw the rest. Binance outflows are the interesting ones because they have nothing to do with the ETF.”
As of March 2, Glassnode estimates that the entire amount of Bitcoin assets accessible on the main trading platform it watches is 2,286,347 BTC ($142.5 billion).Since March 2018, when BTC/USD was trading for just $8,000, this is the lowest sum.
Meanwhile, separate figures tracking Bitcoin market composition show that new entities are now coming on board.
Contributor to the on-chain analytics tool CrryptoQuant, Crypto Dan, caught continuous variations in unspent transaction output (UTXO) ages in one of its recent Quicktake market updates.When additional “younger” coins are involved, “older” coins that have lain slumber for at least six months begin to awaken.He concluded, “New investors are coming in, and we can anticipate the influx of many new ‘individual’ investors in the near future.”
“Eventually, this ratio will continue to decline sharply, leading to the ‘true bull market’ we desire.”