On-chain data analyzed by Glassnode, an on-chain analytics firm, shows that the current Bitcoin cycle is following a different trend compared to the previous epochs. During the previous cycles, the balance on exchanges registered a net increase, meaning investors were depositing more coins in these centralized platforms. However, the balance on exchanges for the current epoch has seen a decline, with investors withdrawing around 680,000 BTC from these platforms. This trend is unlike the previous cycles where exchanges saw a large number of net inflows. The Bitcoin balance on exchanges hit a peak value of 3.2 million BTC just before the COVID crash in March 2020. Today, the indicator’s value stands at 2.3 million BTC, marking a decline of 28% from the peak. It’s worth noting that the current cycle is yet to end, but a reversal is unlikely to happen now that the next halving is drawing near (2024). Despite the unusual trend, Bitcoin is currently trading at around $26,700, up 1% from the previous week.
We Know So Far
By J-S Tremblay / May 24, 2023 / Ethereum / 1 minute of reading