The bitcoin volumes available on exchanges continue to dwindle as investors are in the mood to withdraw their coins. This has been a constant theme since January and many crypto exchanges witnessed monumental declines in the number of bitcoin held by their clients on their platform.
A sharper fall of nearly 10% has been recorded on these exchanges according to research firm Glassnode. From holding 221,348 BTC in the middle of January, by April the number has dwindled and is now at 2,190,887. A 9.17% decline in a period of 3 months to be profound.
Investors are withdrawing #Bitcoin from exchanges – potentially indicating a shift to longer-term holding strategies.$BTC balances have fallen nearly 10% from the highs seen in January.https://t.co/mMVqCQmkax pic.twitter.com/wccnWnM4ka
— glassnode (@glassnode) April 14, 2020
Bitcoin Volume Decline Definitely Worrisome
There’s definitely a cause of worry for the crypto exchanges seeing bitcoin volume go down. The fingers are being pointed at the volatility of the king coin and the corona crisis. Bitcoin trading has gone down massively over the last few weeks which has hurt the exchanges, who were used to increase trading activity on their platform over the last few years as more and more people flocked to the digital world.
This decline in bitcoin volume also signifies that the investors have finally mayhaps given in to the uncertainties of the crypto world. The bitcoin bloodbath is still haunting the market as bitcoin lost 50% of its value in that duration.
Glassnode also reports that this could be a new strategy by the investors to withdraw their coin and shift them somewhere where they can hold it on for the long term. It appears as a case of investors choosing to hold their hands and putting it into a safer place for now, and once the chaos calms down, enter the market again.
Drastic times like these calls for peculiar measures and it won’t be surprising to see the investors take a step back, cut down on bitcoin volume, hold their coin or the long-term and when the current plight of the market starts to show signs of improvement, enter the scene again.
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