Bitcoin Flow Shifts: Exchanges Drain as HODLers Prepare for Halving
According to analytics firm Glassnode, Bitcoin (BTC) is being withdrawn from cryptocurrency exchanges and moving into the wallets of long-term investors as the upcoming halving event approaches.
This trend indicates a notable accumulation of Bitcoin by HODLers, who are entities known for holding onto their coins without selling. Glassnode suggests that this accumulation wave of BTC by HODLers of various sizes is evident through the ongoing outflows from exchanges, as well as from miners and large Bitcoin wallets.
Glassnode’s data also reveals that the illiquid supply of Bitcoin has reached its highest level ever. The term “illiquid supply” refers to the amount of BTC held by entities historically retaining at least 75% of their coins.
This observation is supported by the divergence between the balances of Bitcoin held on exchanges and the volume of coins held in wallets with minimal to no spending history.
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The illiquid supply has recently reached a new all-time high of 15.2 million BTC, while exchange balances have dropped to their lowest levels since January 2018, standing at 2.3 million BTC.
Bitcoin’s upcoming halving event, projected to occur on April 14 of the following year, takes place roughly every four years. During this event, the number of new BTC issued to miners will be reduced from 6.25 Bitcoin per block to 3.125 Bitcoin per block.
As of now, Bitcoin is trading at $26,423, with no significant price movement observed in the last 24 hours.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
