2000 BTC are disappearing from the exchanges every day: the calm before the storm?

2000 BTC are disappearing from the exchanges every day: the calm before the storm?

By bit.team

The economic recovery in both Europe and the United States entails inevitable price spikes. To cope with rising prices, investors bet on assets that are considered a”hedge” against inflation.

In this sense, gold and precious metals enjoy a great advantage when the threat of inflation looms over the economy. However, it has been some time since another asset was added to the list of” hedges ” of inflation: Bitcoin.

It is no coincidence that cryptocurrency is a wave of mass adoption in Latin America, in countries that are notorious for rather uncontrolled inflationary situations. El Salvador has already legalized Bitcoin on its territory, and many other countries plan to follow this in the coming days.

The Salvadoran movement has not yet affected the price of Bitcoin. Even more surprisingly, the cryptocurrency, which usually reacts to growth when the specter of inflation is announced, has not moved much. The unanimous opinion that Bitcoin is a haven from inflation is no longer in the order of things. There are indeed disagreements in the trading community about this, but this does not prevent users from accumulating BTC.

Bitcoin is struggling to overcome the $35,000 resistance. However, the indicators point to the potential growth of crypto assets, says Glassnode.

Its researchers can even see the calm before the storm. They believe that the time has come for investors. The volume of cryptocurrency activity has returned to the level of last October. Long before the bullish trend of Bitcoin.

“You start to feel that there is a calm before the storm, as there is a quiet and calm activity in both the spot market, derivatives and chain indicators”, suggests Glassnode.

And the indicator that crypto experts are most closely watching is the accumulation of BTC. This trend has been observed for several weeks, especially among Bitcoin whales.

This can be seen, in particular, by the withdrawal of BTC from centralized exchanges, to which, for example, Coinbase and Binance belong. According to Glassnode, an average of 2000 BTC is withdrawn from CEX exchanges every day. This is the equivalent of $66 million.

Minimum BTC reserves, as in ATH

According to a report by The Week On-Chain, Bitcoin reserves on exchanges fell to April levels. However, it was during this period that BTC set a record high-about $65,000.

At that time, assets were leaving the reserves of crypto exchanges for accumulation by institutions or, in particular, for feeding the Grayscale GBTC Trust. After that, the trend reversal was sharp. Bitcoin was massively returning to the stock exchanges to be liquidated as a result of the fall.

Thus, now the net volume of transfers is again negative due to an increase in the outflow of Bitcoins from exchanges. “Based on the 14-day moving average, in the last two weeks, in particular, a more positive yield on the outflow of currencies at a rate of ~ 2 thousand was noted. BTC per day, ” Glassnode notes.

Thus, deposits on exchanges represent a decreasing share of transaction costs. The commission for withdrawing funds, on the contrary, increases. In addition, this situation coincides with an increase in flows to DeFi protocols. DeFi Llama notes the growth of TVL by 21% since June 26.