Bitcoin is pouring out of exchanges as price flirts with $10K – Decrypt

Users continue to withdraw Bitcoin from exchanges in record numbers, as the original king of crypto inches towards $10,000.

Liesl Eichhols, a growth strategist at blockchain research firm Glassnode, wrote about the trend in Glassnodes latest weekly report. The report noted that Bitcoins overall market health and the sentiment of its investors, based on data collected by Galssnode, is in a strong place.

And while not overly bullish, theres still a sense of optimism in the market. Its reflected in the price of Bitcoin, which continues to flirt with $10,000. But its also reflected in another data point: how much Bitcoin is being withdrawn from exchanges.

According to Glassnode, users are withdrawing their Bitcoin in droves. Bitcoin holders have been withdrawing from exchanges ever since the March 12 crash in a withdrawing spree that has become the largest and most prolonged BTC exchange balance downtrend in Bitcoin's history.

This activity, Glassnode postulates, may be attributed to bullish sentiment in light of Bitcoins halvingthat once-in-four-years event that caused quite a ruckus within the crypto industry last weekconsidering that the trend began in the weeks leading up to the halving and has continued after it.

A possible explanation for this decrease is that investors are withdrawing funds from exchanges to hold in cold storage, implying a longer-term outlook, the report stated.

Data that suggests small account holders are rising (alongside the balance in Bitcoin whales wallets, as well) corroborates this view, Glassnode wrote in its report.

But theres another factor that could explain why Bitcoin holders are moving their funds away from centralized exchanges.

During the Black Thursday market crash, the Seychelles-based BitMEX exchange suffered a technical snafu that may have contributed to Bitcoins historic plunge during the macro market selloff. Once the place to trade Bitcoin futures, BitMEX has since lost major market share to competitors, and exchange withdraws may play into a trend of distrust that exchanges like BitMEX have engendered in Bitcoin investors.

Instead, Bitcoin holders may be opting to trust themselves with their coins morewhich is how Bitcoin was intended to be used in the first place.

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Bitcoin is pouring out of exchanges as price flirts with $10K - Decrypt