Bitcoin‘s price has been a true rollercoaster in 2020, and despite the massive volatility of prices in the crypto market, the industry gets more and more interest from investors.
This is great news as it means that mainstream crypto adoption is getting nearer. This has been one of the most important goals in the crypto industry, and it remains the same, regardless of the global crisis.
More analysts have already said that this is the time when Bitcoin and the blockchain industry will show their true benefits.
Bitcoin investors move funds away from exchanges to private wallets
According to the latest data coming from the online publication, the Daily Hodl, Bitcoin investors are paying close attention to their funds amidst the recent crypto crash and rising global economic turmoil.
Glassnode crypto analytics company revealed that crypto traders are withdrawing their BTC from exchanges at a rapid rate, and they’re moving it to private wallets.
This will bring the amount of BTC on exchanges to the lowest levels in about eight months.
“Despite the volatility, Bitcoin holders appear to be withdrawing their funds from exchanges. The outflow has been increasing daily since March 18. According to our labels, BTC exchange balances are the lowest they’ve been in ~8 months.”
Despite the volatility, #Bitcoin holders appear to be withdrawing their funds from exchanges. Outflow has been increasing daily since March 18.
According to our labels, $BTC exchange balances are the lowest they've been in ~8 months.https://t.co/iwiDqNlvuI pic.twitter.com/mnPb5vj6Yu
— glassnode (@glassnode) March 26, 2020
Potential explanations for the mass exodus
According to the same online pubcalition, there are various potential explanations for the mass exodus of BTC from exchanges.
Crypto traders may be:
Choosing to maintain custody of their own assets without middlemen
Deciding to hold on for the long term and cease trading
Concerned about the liquidity of crypto exchanges amid the market downturn
The move coincides with a surge in the creation of new Bitcoin addresses.
Regarding the price of Bitcoin today, at the moment of writing this article, BTC is trading in the green, and the coin is priced at $6,293.13.
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