As the crypto winter deepens, only the dedicated Bitcoin investors can be seen holding onto their tokens, but not on the exchanges. Investors seem to be going into hibernation mode as indicated by the drop in on-chain activity by 13% in early July.
Amazingly, bitcoin holders are seen transferring their holdings to and from crypto exchanges. The report comes from a recent tweet published by Arcane Research. To add to this, Glassnode reported that bitcoin balances on exchanges have hit a four-year low.
Arcane Research Explains The Situation
Arcane Research has been reporting negative exchange net flows that they have been perceiving since the beginning of the year.
Tweet A reason has also been mentioned by Arcane Research. The collapse of the big crypto lenders – Celsius, Babel Finance and Wald – earlier this summer due to the liquidity issues they faced, has been a major driving force behind it and has led to the closure of large volume withdrawals.
According to the tweet, “users have been withdrawing Bitcoin from exchanges “like never before.”
Arcane Research also said that issues with the lenders have caused some serious damage to users. They also created an assumption that users may lose interest in crypto exchanges.
Arcane Research wrote, “These events undoubtedly damaged the lenders’ trustworthiness, but are HODLers also losing trust in exchanges?”
In June, 119,000 BTC were delisted from exchanges, followed by 96,000 BTC in July. Afterwards, 65,000 BTC have been withdrawn in August so far.
Before the summer, the biggest amount of BTC that was taken away from exchanges was 71,000 coins in total.
according to glassnodeThe balance of bitcoin on centralized crypto exchanges has fallen to a four-year low of 2,342,202.837.
On-Chain Activity Drops Amidst Crypto Winter
According to a Glass node analysis, in early July, Bitcoin saw a drop in on-chain activity by 13% from November’s high – levels last seen in the bear phases of 2018 and 2019 when Bitcoin was worth less than $10,000.
The risk-off market mood is spreading across cryptocurrency exchanges as investors are withdrawing their coins to crypto wallets for offline deposits. According to Glassnode, exchanges have now seen their balances drop by more than 20% from the January 20 peak.
As per a Glassnode newsletter of July 4, “Bitcoin has seen a near complete expulsion of market tourists, leaving the resolve of HODLers as the last line standing.”
