Despite the recent correction in which bitcoin lost around 20% of its value in a week, on-chain data suggests the liquidity crunch could get worse. In just three days, exchanges have seen more than 23,000 coins taken off, worth more than $1.3 billion.
$ 1.3 billion in BTC withdrawn from trading in three days
Citing data from blockchain analytics firm Glassnode, crypto analyst Ali Martinez describe the recently improved bitcoin withdrawals on digital asset trading platforms.
The on-chain information revealed that the number of withdrawals had seen a dramatic spike in the past several days regardless of bitcoin’s price slump. In total, more than 23,000 coins were withdrawn from the stock exchanges.
This coincided with recent reports indicating that one of the largest BTC whales had resumed their buying spree, accumulating more than $200 million worth of the asset in days.
The total amount withdrawn from the trade is still significantly larger than the purchases of these particular whales, meaning that some of the withdrawals may have been internal transfers.
Nevertheless, it still means that the number of bitcoins sitting on trading venues has declined substantially in days, which should reduce the selling pressure.
Bitcoin investors in profit
As mentioned above, the main cryptocurrency has undergone a massive correction since its peak hit $ 69,000 early last week. In about ten days, the asset lost 20% of its value and dropped below $56,000 earlier today.
Predictably, this hurt investors and their positions. Other data from the analytics company revealed that more than 17% of the total BTC supply went ‘underwater’, meaning only 83% remained profitable.
This, though, has not deterred long-term holders (LTHs). Glassnode explained that such investors have refused to panic sell their coins.
“After peaking at 13.5 million BTC, LTHs have only distributed 100,000 BTC in the past month, which is only 0.7% of their total holdings.”
The company added that a slightly smaller percentage of LTHs are in profit compared to the overall picture – 78.7%. Nonetheless, Glassnode claimed that most of the purchases made around the last price peak came from so-called short-term holders, and now stand at unrealized losses.
