On April 12, the number of Bitcoin deposits (BTC) on exchanges reached the lowest level since August 2016.
Recently, Bitcoin hodlers have started withdrawing their assets from exchanges, with some exchanges heavily affected. For example, the amount of Bitcoin held by BitMEX and Bitfinex has dropped significantly in the past few weeks.
But while the number of Bitcoin held on exchanges has generally declined, this number has not returned to historical levels as the number of BTC transferred into exchanges. The current level is equivalent to mid-2019.
This can partly be explained by the fact that the number of withdrawals from the exchange has also decreased, albeit at a slower pace.
Another reason is that while the number of transfers to exchanges has dropped significantly, the volume of Bitcoin flowing into exchanges remains relatively high, which shows the average size of a sum of money. Bitcoin deposit has increased.
It seems that the latest trend will soon reverse anytime soon because there is a general expectation that the upcoming Bitcoin halving event will have a positive impact on prices. Therefore, most traders and investors may want to withdraw their assets from the exchange to keep them safer.
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According to CoinTelegraph
Translated by ToiYeuBitcoin