Users Removed $200 Worth of Bitcoin on Exchanges

If users are moving their Bitcoins outside exchanges, it could mean they are holding to these assets for a longer period of time.

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May 14, 2020 – Users removed $200 million worth of Bitcoin from online cryptocurrency exchanges after the third Bitcoin halving that happened last May 11.

Data from analytics firm GlassNode firmly suggests users are moving the coins out of exchanges at an unprecedented rate. The graph above shows a firm decline in bitcoin exchanges’ balances, which first started during the flash crash of March 2020, when Bitcoin briefly visited sub $4,000 levels.

Why are users moving their Bitcoins outside of exchanges?

When users buying Bitcoin expects an immediate price increase, then there’s no point moving those tokens out of exchanges. Exchanges like Binance offered had the highest liquidity at near global market prices. High liquidity means there is always someone willing to buy or sell someone else’s bitcoin.

However, if Bitcoins in droves are being moved out of exchanges, it could mean that users do not expect an immediate price increase on the value of Bitcoin. Instead, the users are expecting to hold on to these crypto assets for a longer period. Somehow, many are not confident that their coins stay on exchanges for a long time and would like to protect these tokens themselves using their own wallets, for example.

At BitPinas, we have a page for some of the popular cryptocurrency wallets and Bitcoin wallets you can check out.

Sources: Cointelegraph, Glassnode

This article is published on BitPinas: [Post-Halving] Users Removed $200 Worth of Bitcoin on Exchanges

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