Cryptocurrency analytics company Glassnode said that amid the fall of the crypto market, investors are increasing commissions to speed up the withdrawal of bitcoin to exchanges.
According to report Glassnode, the number of transactions on the Bitcoin network has skyrocketed over the past week. Experts believe that this is happening against the backdrop of a massive withdrawal of BTC from portfolios to exchanges. Last week, the Bitcoin mempool saw an influx of 42,800 transactions. According to analysts, these were “urgent” transactions – this is evidenced by the large commissions paid for the transaction.
The report clarifies that last week the average commission increased by about 15% to $2.72. Investors have been paying above average fees, likely to prioritize their bids to mitigate portfolio risk or add collateral to their margin positions as the BTC price has fallen 19% over the past seven days.
Just over 15% of the fees paid for transactions on the network correlate with exchange deposit rates. They were only higher in May 2021 during a period of strong sell-offs. Last week, BTC inflows to exchanges exceeded capital outflows from trading platforms by $50 million. The total volume of bitcoins on exchanges was only exceeded in October and November last year. It coincided with the peak of the bull market in late December 2017 and early January 2018.
The report states that since mid-April, there has been a low trend in Bitcoin accumulation. Last week, “shrimp” – investors with a balance of less than one bitcoin on their wallet – surpassed even “whales” in terms of savings. At the same time, analysts note that the cumulative strength was weak compared to the previous months of this year.
Most of all assets were sold by holders with a balance of 10,000 BTC. The authors of the report note that for most of 2022, bitcoin distribution was higher than hoarding, however, the largest hoarders were those with less than 1 to 10 BTC.
According to analysts, the total amount of commissions has reached a local maximum, as investors are urgently trying to get out of more volatile positions. Based on the above data, experts suggest that Bitcoin will continue to capitulate.
At the end of April, analysts at the research platform Arcane Research said that investors accumulating bitcoin reduce its liquidity in the blockchain and increase its market value.
Source: Bits
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