Bitcoin Leaving Crypto Exchanges Reach All-Time High
Since 2022 began, the crypto market has been in a downward trend. The decline has affected several digital currencies, including the flagship currency, Bitcoin. However, June recorded the greatest outflow of Bitcoin leaving crypto exchange platforms. This brings the balance left on all exchange firms to over 2.4 million BTC.
Largest Amount of Bitcoin Leave Crypto Exchange in June
Last month, risk worries seized the entire crypto community as the market dropped. As a result, June became the highest month of Bitcoin net withdrawals in history.
It recorded a 30-day peak net change of about 152,446 BTC departing exchanges. This was the record before the 26th of June.
Also, over 123,652 BTC left exchanges during June. However, this total at the end of June was low, yet still very significant.
Although these monthly withdrawals were a milestone in BTC, they weren’t in terms of Dollars. Last year April and September witnessed bigger amounts of net withdrawals in terms of Dollars.
Meanwhile, denoting figures in terms of dollars and BTC provides more insight into the market. However, using Bitcoin terms is also preferable. This is because it allows for consistent measurement across different periods.
As of the time of writing, 2,400,178 BTC, which represents $49.35 billion and around 12.58% of the entire circulating supply, were spread over various exchanges. Also, the Glassnode report shows that the balances of BTC on exchanges have decreased during the past two years.
Market Situation for Bitcoin in June
Meanwhile, exchange balances and exchange rates may not correlate all the time. However, keeping an eye on long-term patterns may be helpful, particularly when the trend dramatically changes, as it did in March 2020.
In June, BTC’s prices were at the $30,000 level at the beginning of the month. However, prices sharply dropped, and markets have yet to recover fully.
Between the 18th and 18th of June, BTC/USD fell from $31,600 to $17,612. During this time, inflation in the U.S. remained at very high levels.
This compelled the Federal Reserve to raise rates once more. The Fed increased the rate by 75 basis points to rein in spending. The hike helped increase market confidence as traders bought the dip in June.
Given the significant counterparty risk the crypto sector has recently been exposed to, it will be fascinating to observe if the pattern of declining exchange balances will increase.