Accumulation? Investors Withdrew $1.3B in Bitcoin From Exchanges in 3 Days
Despite the recent correction in which bitcoin lost roughly 20% of its value in a week, on-chain data suggests that the liquidity crisis could be increasing. In just three days, exchanges have seen more than 23,000 coins taken off, worth more than $1.3 billion.
$1.3B In BTC Withdrawn From Exchanges in Three Days
Citing data from the blockchain analytics company Glassnode, crypto analyst Ali Martinez outlined the recently enhanced bitcoin withdrawals from digital asset trading platforms.
The on-chain information revealed that the number of withdrawals had seen a dramatic spike in the past several days regardless of bitcoin’s price slump. Overall, over 23,000 coins were moved out of exchanges.
This coincided with recent reports indicating that one of the largest BTC whales had resumed their buying spree, accumulating more than $200 million worth of the asset in days.
The entire amount taken off exchanges is still significantly larger than this particular whales’ purchases, meaning that some of the withdrawals could have been internal transfers.
Nevertheless, it still means that the number of bitcoins sitting on trading venues has declined substantially in days, which should reduce the selling pressure.
Bitcoin Investors in Profit
As mentioned above, the primary cryptocurrency experienced a massive correction since its peak reached early last week of $69,000. In about ten days, the asset lost 20% of its value and dropped below $56,000 earlier today.
Somewhat expectedly, this has harmed investors and their positions. Further data from the analytics company revealed that over 17% of the total BTC supply has gone “underwater,” meaning that only 83% has remained in profit.
When the #Bitcoin market experiences a large sell-off, the change in profitable supply indicates of how many coins have an on-chain cost basis above the current price.
Since the ATH, over 17% of the $BTC supply has fallen underwater, leaving 83% of the supply in profit.
— glassnode (@glassnode) November 19, 2021
This, though, has not deterred long-term holders (LTHs). Glassnode explained that such investors have refused to panic sell their coins.
“After peaking at 13.5M BTC, LTHs have only distributed 100,000 BTC over the last month, representing just 0.7% of their total holdings.”
The company added that a slightly smaller percentage of LTHs are in profit compared to the overall picture – 78.7%. Nevertheless, Glassnode asserted that most purchases that came around the latest price top came from so-called short-term holders, and they now sit at unrealized losses.
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