Following a crypto market crash in the middle of March, the amount of wallets with 1 BTC in them has started rising, peaking at all-time-highs. However, at the same time, it seems that the coin is leaving exchanges. According to crypto market researcher, Glassnode, addresses with 1 BTC are on the rise, even as Bitcoin exits exchanges.
Number Of Addresses With 1 BTC Increases
On 29 March, just two weeks after the crash, Glassnode reported that the number of addresses with a whole BTC had reached a high of 797,632. Just one day prior, it had reached 797,580. For clarity, that’s 52 extra addresses reaching the 1 BTC milestone in 24 hours.
On 29 February (when BTC sat at around $8,700), the number of addresses with 1 BTC was 790,438. That’s a growth of 7,142 addresses in just one month. Since the start of 2020, we’ve seen the following growth:
- 29 January to 29 February: +5,689 addresses with min. 1 BTC
- 29 December to 29 January: +3,542 addresses with min. 1 BTC.
With the recent price drop, we’ve seen the biggest increase in the number of addresses with 1 coin in 3 months.
Glassnode also reported that the number of addresses holding a minimum of 0.1 BTC has risen to a high of 2,948,354. Furthermore, the number of addresses with 10,000 BTC hit a six-month high on 26 March, sitting at 112, compared to 111 in October last year. According to Glassnode, the highest number ever of these wallets was 126, in June 2016 and September and October 2018.
Bitcoin Holders Withdrawing Funds From Exchanges
Even as addresses with 1 BTC are on the rise, the Bitcoin is exiting exchanges. “Despite the volatility, Bitcoin holders appear to be withdrawing their funds from exchanges,” said Glassnode. According to their research, daily outflow has been on the rise since 18 March. “According to our labels, BTC exchange balances are at the lowest they’ve been in ~8 months.”
Chainalysis, a blockchain and analytics specialist, said that “Large increases in exchange inflows have proven to be a good indicator of increased volatility, so we recommend keeping an eye on the amount being transferred to exchanges.”
Still, many are speculating about why exactly BTC holders would be withdrawing their coins from exchanges, and into their own wallets. Some of the reasons suggested include, fear that smaller exchanges may fall, concern about the effects of the Covid-19 pandemic, and more stringent regulation, etc.
Whole Coin Addresses On The Rise, As The Cryptocurrency Leaves Exchanges
Addresses with 1 BTC are on the rise, even as Bitcoin exits exchanges. It seems as though the crypto market crash in the middle of March may have contributed to this, with more crypto users buying up and pulling out of exchanges. Still, what has contributed to this? Covid-19 panic, looming global recession, or a combination of a variety of factors?
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