Wednesday, November 25, 2020
Home Blockchain News Bitcoin Wallets Transferring Funds to Crypto Exchanges have Doubled Since January

Bitcoin Wallets Transferring Funds to Crypto Exchanges have Doubled Since January

Glassnode, an on-chain market analytics firm, has disclosed that addresses sending Bitcoin to crypto exchanges have doubled since January 2020.

The number of Bitcoin transactions to crypto exchanges stands at nearly 100,000 each day, and this is a notable change given that the majority of funds were being withdrawn in droves as the year started.

Bull Trend Pattern

Glassnode tweeted that the last time Bitcoin wallets making transfers to exchanges stood at around 100k unique addresses was during the peak bull market of 2017. 

glassnode.png

The firm asserted that this trend had not been witnessed in recent times because what followed the bullish run in 2017 was a steep decrease in Bitcoin price.

Keeping a watchful eye in 2020

The crypto community’s expectations were high as 2020 kicked in because of the much-anticipated Bitcoin halving event that happened in May. Pundits, investors, and traders kept a keen eye on this event because mining rewards were slashed from 12.5 BTC to 6.25 BTC.

However, the coronavirus (COVID-19) pandemic took the world by storm, and measures like lockdowns and social distancing were put in place. The American administration resorted to printing over $6 trillion and pumping it to the economy as a bailout to the economic turmoil triggered by COVID-19. In turn, this has constantly increased the U.S. Dollar inflation rate, and it is anticipated to worsen if printing continues indiscriminately.

Therefore, investors seem to be looking for alternatives, and Bitcoin is coming in handy as depicted by the doubling of Bitcoin addresses making deposits to crypto exchanges. Additionally, fiat currencies like the dollar are inflationary because their value decreases with time-based on the printing of more money. In contrast, Bitcoin is deflationary as its supply is fixed at 21 million coins. As a result, its value is expected to increase with time. 

Image source: Shutterstock

Popular Articles

Wrapped Filecoin Comes to DeFi on Ethereum

In brief Anchorage, a crypto custody provider, has partnered with Tokensoft to bring wrapped Filecoin to DeFi markets. Wrapped Filecoin uses third-party custodians to create 1:1...

Fire breaks out because of a Bitcoin mining farm in Russia

A cryptocurrency mining farm has caused a fire to break out in an apartment in St. Petersburg in Russia, which injured a 35-year-old owner...

Price analysis 11/25: BTC, ETH, XRP, BCH, LINK, LTC, ADA, DOT, BNB, XLM

The crypto market has been in a strong bull run over the past few days and that has pushed Bitcoin (BTC) to its second-best day ever....

Bitcoin Pushes Towards Highs as Spot Market Gains Full Control

Bitcoin has seen some incredibly strong price action throughout the past few days and weeks, with the selling pressure seen at its key resistance...

Facebook’s Libra hires former OCC prosecutor and central bank expert

The Libra Association, which manages Facebook’s quiet cryptocurrency project, has appointed a general counsel to oversee the development of its forthcoming payment system.  In an...

Coinbase Ends Margin Trading Service on Coinbase Pro

US-based cryptocurrency exchange Coinbase stopped margin trading services on the Coinbase Pro platform. The exchange highlighted new guidance from the Commodity Futures Trading Commission...