New research reveals that in the last months of 2019, outflows from exchanges have surpassed inflows. This points towards an intention to hold onto Bitcoin (BTC), potentially meaning lesser selling pressure.
Moving Coins to Exchanges Slowed Down in October
Token Analyst notes net outflows from exchanges in the past few days. The composition of daily activity varies, but the findings suggest coins are being retracted from active trading.
🚨 24H BTC on-chain flows:#binance $30M in | $35M out#bitmex $5M in | $12M out#bitfinex $5M in | $3M out#bitstamp $3M in | $6M out#bittrex $3M in | $3M out#poloniex $1M in | $4M out#kraken $5M in | $15M out#huobi $21M in | $28M out
More @ https://t.co/u90eafzR5J
— TokenAnalyst (@thetokenanalyst) November 4, 2019
The observations match the recent findings by the Delphi report for October, where exchange inflows slowed down for the first time since April. During periods of rising prices, coins move on exchanges, with the potential to fill orders at new, more appealing prices. Since July, on-chain activity of active addresses has also slowed down, coinciding with a period of relatively flat price action.
The October rally, however, which recovered BTC prices from $7,400 to as high as $10,000, arrived unexpectedly. For most of the month, prices remained stationary and traders held onto their coins. In the second half of 2019, there were indications that trading had moved into the hands of “whales”. Retail interest waned, as enthusiastic buyers noted how quickly their fortunes could turn in the volatile market.
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