Bitcoin Leaving Exchanges Hits An All-Time High
The listed below is an excerpt from a current edition of Bitcoin Magazine Pro, Bitcoin Magazines premium markets newsletter. To be amongst the very first to receive these insights and other on-chain bitcoin market analysis directly to your inbox, subscribe now.As fears of contagion and counterparty risk have actually gripped the bitcoin/crypto area, June silently was the biggest month of net withdrawals in documented history for bitcoin, with a peak 30-day net change of 152,446 BTC leaving exchanges during the 30 days that proceeded June 26. The end-of-month total for June was smaller sized, but still very notable at 123,652 BTC leaving exchanges on a net basis over the month.Bitcoin exchanges net flows and the typical bitcoin priceBitcoin exchange streams reveals a bitcoin is leaving exchanges at a fast paceWhile these regular monthly outflows were a record in bitcoin terms, in dollar terms it was not, with April and September 2021 in addition to April of 2022 boasting bigger quantities of net outflows in dollar terms. While it is informative to represent figures in both dollar and bitcoin terms, we choose to use bitcoin terms to keep measurement constant throughout period. Shown listed below is the aggregate quantity of bitcoin held across exchanges (Binance, Bitfinex, Bithumb, BitMEX, Bitstamp, Bittrex, Coinbase, Coincheck, Crypto.com, FTX, Gate.io, Gemini, HitBTC, Huobi, Kraken, KuCoin, Luno, OKEx, Poloniex). The overall quantity of bitcoin throughout these exchanges at the time of writing is 2,400,178 BTC, equating to $49.35 billion and roughly 12.58% of flowing supply. Bitcoin balances on exchanges is trending lower in the last two yearsAlthough exchange balances do not necessarily correlate directly with the currency exchange rate, it can be informative to monitor ongoing patterns, specifically when the trend significantly shifts, with March 2020 serving as an excellent example. Last Note on Exchange BalancesIt will be interesting to see if the pattern of reducing exchange balances accelerates offered the vast quantity of counterparty threat that the crypto industry was exposed to over recent months..