Bitcoin flows on cryptocurrency exchanges are declining amid a decline in the cryptocurrency exchange rate, but reserves continue to increase
Bitcoin has experienced one of the largest corrections in its history, with the sell-off strongly affecting incoming and outgoing transactions with bitcoin on digital asset exchanges.
According to CryptoQuant, the inflow and outflow of BTC on exchanges has declined sharply over the past few days. This trend coincided with the fall of the bitcoin exchange rate.
Traders do not start bitcoins on exchanges
The number of bitcoin addresses that have replenished the wallets of cryptocurrency exchanges has decreased to 25 thousand. This is the lowest value since the beginning of this year. The daily maximum was recorded a week ago at the level of 96 thousand transactions. Back then, bitcoin was trading above $46,000.
The outflow of bitcoins from exchanges is also decreasing
The number of BTC addresses that received coins from the wallets of cryptocurrency exchanges also significantly decreased. According to CryptoQuant, on May 22, such activity was recorded at 30 thousand addresses. Meanwhile, on May 10, 160 thousand addresses participated in outgoing transactions.
The minimum number of transactions was recorded on May 21 (20,500 addresses). This is the lowest figure since the beginning of 2021.
BTC stocks on exchanges are growing
The inflow and outflow of BTC on the exchanges sharply decreased against the background of the fall in the value of the first cryptocurrency. However, statistics provided by CryptoQuant show that bitcoin stocks on exchanges are gradually growing.
The number of coins on exchange wallets has been increasing since the end of April, when the annual minimum was recorded. Now there are more than 2.44 million BTC on the exchanges, compared to 2.39 million a month ago. Thus, the reserves of the exchanges increased by 54.284 BTC, which is equivalent to $1.92 billion at the current exchange rate.
At the time of writing, bitcoin is trading at $33,500. The coin has recovered from an intraday low of $31,750, but it is still 13% lower on a daily basis.
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