The number of bitcoins on centralized cryptocurrency exchanges decreased to the level of 2018 when the value of the main cryptocurrency dr...
The number of bitcoins on centralized cryptocurrency exchanges decreased to the level of 2018 when the value of the main cryptocurrency dropped to $ 3.2 thousand. On the last day alone, an outflow of more than 63.5 thousand bitcoins ($ 2.5 billion) was recorded, writes RBC Crypto.
During the week, the service for tracking cryptocurrency transactions, Whale Alert recorded more than 50 operations to withdraw digital assets from exchanges, the total amount of which is $ 18.5 billion (465 thousand bitcoins).
Often, the outflow of funds from crypto exchanges is associated with active purchases. For example, on the evening of May 19, after the bitcoin rate fell by a third per day, to $ 30 thousand, the largest withdrawal of digital coins was recorded in a year. Users withdrew about 175 thousand BTC for $ 7 billion to cold wallets at the exchange rate at that time.
Not worth attention
Large movements of bitcoins and other cryptocurrencies are the least important thing for retail investors to pay attention to, says Ivan Petukhovsky, co-founder of the EXMO crypto exchange. According to him, it is especially not worth taking such transactions into account if the movement of digital coins occurs between unknown addresses, the owners of which cannot be identified.
“The opinion that large withdrawals of coins signify an imminent fall in the exchange rate is most often not confirmed by practice. Such conclusions most often mean a completed large OTC transaction, in which the client prefers not to store the cryptocurrency on the exchange and asks to withdraw it to a third-party wallet, "Petukhovsky explained.
Not a guarantor of a reversal
Most exchanges are not the most reliable place for storing large volumes of cryptocurrency and "whales" almost never store their funds on them, says Anton Kravchenko, CEO of Xena Financial Systems.
According to the expert, large withdrawals of bitcoin may mean moving recently purchased coins to "cold wallets" for more reliable storage, that is, it is an indirect result of buying cryptocurrency by "whales".
“This may mean a trend reversal at this point, but does not guarantee it,” added Kravchenko.
Is not a fact
If such volumes were really withdrawn to "cold wallets", it could be called a powerful signal of the beginning of a confident bull market, but, most likely, we observe a similar picture due to the overlap of other factors, Nikita, senior analyst at BestChange.ru Zuborev.
In his opinion, one of the researchers 'problems is that the recipients' wallets cannot always be identified, and it is impossible to say with certainty about the withdrawal for the sake of "cold storage".
This effect can be explained by the simultaneous creation of new addresses for "cold storage" of such large exchanges as Binance and Coinbase, Zuborev said. He argues that on-chain metrics cannot filter this kind of data, so they can overlap with the big picture.
It may also be a simple attempt by Glassnode enthusiasts to push the rate up by comparing patterns - many depositors who bought bitcoin for more than $ 40,000 want to believe in any such opportunity, the analyst admitted.