Thursday, January 21, 2021
Bitcoin Market News
  • Home
  • Bitcoin
  • Market
  • Cash
  • Price
  • Beginners
  • Gold
  • Private
  • Cryptos
  • Investors
  • Technical
  • Crash
  • Spam
  • Stock
  • Blockchain
  • Videos
  • Home
  • Bitcoin
  • Market
  • Cash
  • Price
  • Beginners
  • Gold
  • Private
  • Cryptos
  • Investors
  • Technical
  • Crash
  • Spam
  • Stock
  • Blockchain
  • Videos
Bitcoin Market News
No Result
View All Result

Investors Turn Bullish as Bitcoin Exchange Reserves Drop to 1-Year Low

8 months ago
in investors
3 min read
Investors Turn Bullish as Bitcoin Exchange Reserves Drop to 1-Year Low
Share on FacebookShare on Twitter


According to data from glassnode, Bitcoin reserves on cryptocurrency exchanges fell to a 12-month low. This coincides with a reported mass outflow of BTC from Coinbase.

On June 6, various media outlets reported that Coinbase may sell its blockchain intelligence arm Coinbase Analytics to the Internal Revenue Service (IRS) and the Drug Enforcement Agency (DEA). Following the reports, there was a surge in BTC outflow from the exchange.

Investors withdraw Bitcoin as a precautionary measure

Like any other regulated exchange, Coinbase holds a trove of user data due to its compliance with strict know your customer (KYC) policies in the U.S. The reported surge in BTC outflow suggests investors are worried the deal may lead their user data to be in jeopardy.

However, Coinbase reportedly said that Coinbase Analytics does not hold any user data from the exchange and merely operates using publicly available user data.

Most blockchain analytics companies monitor addresses involved with fraudulent or criminal activities such as security breaches and hacking attacks to track the flow of illicit funds.

On-chain data can be critical in preventing proceeds from illegal operations from being laundered on exchanges. Companies like Chainalysis and Cyphertrace use public blockchain data to actively observe the movement of suspicious transactions of cryptocurrencies like Bitcoin.

The explanation provided by Coinbase did not stop BTC from leaving the exchange’s wallets and according to Whale Alert, several multi-million dollar transactions were documented moving from Coinbase wallets to unknown wallets.

Record low exchange reserves is a bullish signal

Since March 2020, the outflow of Bitcoin from cryptocurrency exchanges consistently increased and this shows investors are less likely to sell their holdings in the short-term.

Researchers at Glassnode said:

“Balance on Exchanges just reached a 1-year low of 2,310,466.600 BTC. Previous 1-year low of 2,313,098.855 BTC was observed on 03 June 2020.”

$BTC Balance on Exchanges

$BTC Balance on Exchanges. Source: Glassnode

Some analysts believe that the rise in withdrawals from cryptocurrency exchanges is a highly optimistic metric for the medium to long-term price trend of BTC.

Typically, exchange reserves drop when Bitcoin enters an accumulation phase. For example, in early 2019 BTC price was hovering around $4,000. As it started to gradually climb upwards to reach $14,000 the balance of Bitcoin on exchanges dropped substantially.

Eventually buying demand is expected to overtake selling pressure due to investors continuing to move their funds off exchange and the daily sell-off from Bitcoin miners being absorbed. 

If the balance of Bitcoin on exchange does not increase in the near future, it will raise the probability of BTC entering a proper accumulation phase that may set it up for a multi-year bull market.

A confluence of declining Bitcoin reserves of Bitcoin, dropping sales of BTC by miners, and growing institutional adoption may catalyze the next…



Read more:Investors Turn Bullish as Bitcoin Exchange Reserves Drop to 1-Year Low

Related articles

Bitcoin Market receives contribution led by GP Investimentos and Parallax Ventures

Bitcoin Market receives contribution led by GP Investimentos and Parallax Ventures

January 21, 2021
Some institutional investors taking profit as Bitcoin retraces

Some institutional investors taking profit as Bitcoin retraces

January 21, 2021
Tags: 1YearBitcoinbitcoin news todayBullishdropExchangeInvestorsReservesturn

Related Posts

Bitcoin Market receives contribution led by GP Investimentos and Parallax Ventures

Bitcoin Market receives contribution led by GP Investimentos and Parallax Ventures

by Bitcoin Market
January 21, 2021
0

GP Inova Fund, of GP Investimentos, Parallax Ventures and Sublimis Funds, of Parallax Ventures, Evora Fund, of Ze Bonchristiano;...

Some institutional investors taking profit as Bitcoin retraces

Some institutional investors taking profit as Bitcoin retraces

by Bitcoin Market
January 21, 2021
0

A new report from crypto fund provider CoinShares has indicated that some institutional investors have been realizing profits during...

US stocks gain as investors await a flood of earnings reports

US stocks gain as investors await a flood of earnings reports

by Bitcoin Market
January 20, 2021
0

Traders on the floor react before the opening bell on the New York Stock Exchange on March 9, 2020...

What Does Gary Gensler as SEC Chief Mean for Crypto?

What Does Gary Gensler as SEC Chief Mean for Crypto?

by Bitcoin Market
January 19, 2021
0

When he was chairman of the Commodities Futures Trading Commission (CFTC), Gary Gensler developed a reputation as a tough...

Mt. Gox exchange users may finally get to recover some of their lost Bitcoin

Mt. Gox exchange users may finally get to recover some of their lost Bitcoin

by Bitcoin Market
January 19, 2021
0

Some of the digital coins have been recovered since the exchange went bust, but much of it is still...

Load More

Trend Now

  • Trending
  • Comments
  • Latest
Twitch Director Shaan Puri Moves 25% of Net Worth Into Bitcoin to ‘Front Run Wave of

Twitch Director Shaan Puri Moves 25% of Net Worth Into Bitcoin to ‘Front Run Wave of

December 11, 2020
Ledger Wallet Data Leak Dumped on Raidforums for Free, Company Regrets the Situation

Ledger Wallet Data Leak Dumped on Raidforums for Free, Company Regrets the Situation

December 21, 2020
Argo Blockchain boosts mining margins in July

Argo Blockchain boosts mining margins in July

August 5, 2020
J.K. Rowling Twitter Storm shows the Crypto Ecosystem Needs to Mature – CityAM

J.K. Rowling Twitter Storm shows the Crypto Ecosystem Needs to Mature – CityAM

May 19, 2020
Three Gorges Dam Collapse Mining Threat, China Banks Ban Buying Gold: The Bitcoi…

Three Gorges Dam Collapse Mining Threat, China Banks Ban Buying Gold: The Bitcoi…

December 4, 2020
The Most Secure Cryptocurrency Wallets for Different Users

The Most Secure Cryptocurrency Wallets for Different Users

November 1, 2020
BlockFi Suffers Breach, BitMEX Trading Engine Fails

BlockFi Suffers Breach, BitMEX Trading Engine Fails

0
Bitcoin daily chart alert – Bullish chart pattern develops – May 19

Bitcoin daily chart alert – Bullish chart pattern develops – May 19

0
Calvin Ayre Invests in True Reviews: A New Take on Consumer Review Sites Built on the

Calvin Ayre Invests in True Reviews: A New Take on Consumer Review Sites Built on the

0
J.K. Rowling Twitter Storm shows the Crypto Ecosystem Needs to Mature – CityAM

J.K. Rowling Twitter Storm shows the Crypto Ecosystem Needs to Mature – CityAM

0
Crypto.com’s MCO Visa Cards Are Now Shipping In Europe – Fintech Singapore

Crypto.com’s MCO Visa Cards Are Now Shipping In Europe – Fintech Singapore

0
Elon Musk tried to explain Bitcoin to JK Rowling on Twitter and this happened

Elon Musk tried to explain Bitcoin to JK Rowling on Twitter and this happened

0
Bitcoin-Based Ethereum Smart Contract and Sidechain Rival RSK Launches Today

Bitcoin-Based Ethereum Smart Contract and Sidechain Rival RSK Launches Today

January 21, 2021
1 Warren Buffett Stock to Buy for a 2021 Market Crash – The Motley Fool Canada

Warren Buffett: Buy Gold, Not Bitcoin

January 21, 2021
NYDFS hosts crypto industry competition to get real-time data on Bitlicensees

NYDFS hosts crypto industry competition to get real-time data on Bitlicensees

January 21, 2021
Bitcoin Plunge Has Newbies Scrambling to Google Double-Spend

Bitcoin Plunge Has Newbies Scrambling to Google Double-Spend

January 21, 2021
Bitcoin falls 11% after report suggests a critical flaw in the cryptocurrency called

Bitcoin falls 11% after report suggests a critical flaw in the cryptocurrency called

January 21, 2021
Riot Blockchain plummets 32% in 3 days as bitcoin momentum turns negative

Riot Blockchain plummets 32% in 3 days as bitcoin momentum turns negative

January 21, 2021
  • Contact Us
  • Terms of Use
  • Cookie Privacy Policy
  • Privacy Policy
  • DMCA

© 2020 MarketForBitcoin.com

No Result
View All Result
  • Home
  • Bitcoin
  • Market
  • Cash
  • Price
  • Beginners
  • Gold
  • Private
  • Cryptos
  • Investors
  • Technical
  • Crash
  • Spam
  • Stock
  • Blockchain
  • Videos

© 2020 MarketForBitcoin.com

  • BTC

    (USD 31,904.73)

  • ETH

    (USD 1,196.49)

  • XRP

    (USD 0.27)

  • BCH

    (USD 439.60)

  • EOS

    (USD 2.60)

  • LTC

    (USD 133.81)

  • XMR

    (USD 137.59)

  • TRX

    (USD 0.03)

  • USDT

    (USD 1.00)

  • BNB

    (USD 39.99)

  • BTG

    (USD 10.89)

  • BCN

    (USD 0.00)

  • BTCP

    (USD 0.10)

  • ZRX

    (USD 0.49)