Bitcoin outflows from centralized exchanges in July reached their highest level since November 2020. At the same time, about 40,000 BTC were withdrawn from the exchanges over the past seven days.
Bitcoin outflows from centralized exchanges exceeded 100,000 BTC in July, the highest level since November 2020, according to a report by research firm Glassnode. Analysts estimate that there are now only 13.2% of BTC in circulation on centralized exchanges, which is a new low for 2021.
The outflow of bitcoins from exchanges increased to almost 150,000 BTC per month at the end of April 2020 after the markets collapsed. Despite a strong decline, by the end of May 2020, the price of BTC began to recover, and the trend of withdrawing coins from exchanges slowed down. The indicator again approached 150,000 BTC in November 2020, when Bitcoin surged to its historic high of $ 20,000 at that time.
Glassnode analysts have noted multidirectional trends between BTC flows on exchanges Coinbase and Binance for most of 2021. Coinbase recorded a significant outflow of bitcoins from the site, and Binance became the largest recipient of BTC.
Binance’s reserves are now starting to deplete and 37,500 BTC have been withdrawn from the exchange in the last week. Coinbase balances remained stable in June. However, as of mid-July, 30,000 BTC had been transferred to the exchange, and 31,000 BTC had been withdrawn from the platform last week.
When it comes to macroeconomic sentiment, Glassnode suggests looking at its “dynamism metric” to determine if there is an accumulation trend. The indicator indicates a long-term trend towards accumulation of BTC after the sell-off in May.
“It seems that HODL and accumulation is the most likely dominant trend in the market,” the report says.
According to another Glassnode report, 9.23 million BTC have been accumulated for the first time in history at the addresses of large holders storing between 100 and 10,000 BTC this week. The number of active Bitcoin addresses increased by 30% over the week.
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