Bitcoin exchanges lost 100,000 BTC during the weekend's price crash, data shows - and that's a bullish sign.
Figures from on-chain monitoring resource CryptoQuant on Aug. 5 tracking exchange balances show a dramatic drop occurring just after BTC/USD shed $1,200 in minutes.
Prior to the turbulent weekend's trading, Bitcoin balances on exchanges totalled approximately 2.49 million BTC. Afterwards, the ledger fell to 2.39 million BTC - the lowest ever recorded by CryptoQuant.
"The amount of #Bitcoin held on exchanges just dropped off a cliff," he wrote on Twitter on Thursday.
"It happened two days ago - whales bought up the selloff. $BTC flowing out of exchanges is *bullish*".
As Cointelegraph reported, decreasing numbers of coins held on exchanges suggests that investors plan to hold BTC, not sell or trade it at short notice.
"The only reason to take them off exchange is because you intend to not sell them anytime soon," he added.
Whales - those holding conspicuously large amounts of Bitcoin - seemed to have anticipated the pullback far earlier, as coins made their way back to exchanges a week earlier.
Commenting on the trend, CryptoQuant offered an alternative but no less bullish explanation involving major exchange Binance.
"68101 BTC transferred from Binance to a newly created wallet, and not clear whether it's their new cold wallet or the 3rd party custody," the firm responded to Garner.
Bitcoin Whales Bought the Dip, Data Shows as $1.2B Leaves Exchanges
Published on Aug 6, 2020
by Cointele | Published on Coinage
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