There has been a recent surge of BTC outflows from centralized exchanges. This surge in outflows indicates that the bitcoin market is in the accumulation process. Bitcoin touched its lowest price back in May. Centralized exchange data shows that the number of bitcoins being held by the centralized exchanges continuously diminished from the month of May. On average 2,000 bitcoins (worth near $66 million at current prices) are being withdrawn from the exchanges on the daily basis.
The current Bitcoin reserves present in the central exchanges are at the lowest since the month of April. According to the report published by Glassnode, during the past couple of month’s majority of the bitcoins transferred to Grayscale Bitcoin Trust, the remaining amount was accumulated by the investors driving continuous outflows of bitcoin. The crypto was ha recent seen a shift away from the centralized system of crypto trade.
The factor triggering this outflow is speculation that crypto prices will go downs. In case this outflow carries on and increases it will certainly take the bitcoin market graph into the negative zone. The report further added that for the past two weeks the transaction fees of these exchanges diminished to 14%. Which was previous around 17%.
On the other hand, chain fees due to these withdrawals experienced a rapid spike from 3.7% up to 5.4% this month. This 2% increase has shown that investors have preferred to accumulate their coins rather than selling them. However, recently bitcoin is under a lot of pressure and there have been multiple predictions indicating a slump in bitcoin’s price.
However, investors are still confident enough that bitcoin will bounce back. That’s why accumulating digital currency is a better option than short time selling position. In addition to that, the fall in the exchange reserves has shown that investors are not happy with the centralized financial model. They need more freedom and control over their investment and the decision they make.
The data analysis has predicted the price surge. Their values have risen from $92 billion to $111 billion. This shows that how to lock the assets by accumulating their works. Given the fact that the crypto market is moving away from the centralized trading system, Grayscale Bitcoin has made the right choice.
Apart from that, some key game players are also working with secure payment companies to further bring in transparency. This might also be helpful for the investors since investors will be in control over their financial transactions. As soon as the market will bounce back massive bitcoin investment will be made.