• Advertise
  • Submit a Press Release
NewsBTC
Bitcoin & cryptocurrency news today, price & technical analysis
Price & Market
Cap Data from
Nomics Logo
  • News
    • Bitcoin
    • Ethereum
    • Ripple
    • Cardano
    • Tezos
    • EOS
    • Chainlink
    • Sponsored
    • Press Releases
  • Analysis
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Cardano (ADA)
    • Chainlink (LINK)
    • Litecoin (LTC)
    • Tezos (XTZ)
    • Zcash (ZEC)
    • EOS
    • YearnFinance (YFI)
  • Education
    • Accepting Bitcoin payments
    • Using Bitcoin
    • What is Bitcoin Mining
    • How to Trade Bitcoin
    • How to Buy Bitcoin
    • Digital Currency Exchange
    • Proof of Existence
    • Is Bitcoin legal?
    • Bitcoin Books
  • Trading Course
  • Directory
    • Crypto Businesses
    • Bitcoin Brokers
    • Casinos
    • Sportsbooks
  • TradeeToro
  • Invest BTCTry
  • Join STC ICOBuy
No Result
View All Result
  • News
    • Bitcoin
    • Ethereum
    • Ripple
    • Cardano
    • Tezos
    • EOS
    • Chainlink
    • Sponsored
    • Press Releases
  • Analysis
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Cardano (ADA)
    • Chainlink (LINK)
    • Litecoin (LTC)
    • Tezos (XTZ)
    • Zcash (ZEC)
    • EOS
    • YearnFinance (YFI)
  • Education
    • Accepting Bitcoin payments
    • Using Bitcoin
    • What is Bitcoin Mining
    • How to Trade Bitcoin
    • How to Buy Bitcoin
    • Digital Currency Exchange
    • Proof of Existence
    • Is Bitcoin legal?
    • Bitcoin Books
  • Trading Course
  • Directory
    • Crypto Businesses
    • Bitcoin Brokers
    • Casinos
    • Sportsbooks
  • TradeeToro
  • Invest BTCTry
  • Join STC ICOBuy
No Result
View All Result
NewsBTC
No Result
View All Result
Price & Market
Cap Data from
Nomics Logo
Home Cryptocurrency news Bitcoin

Since Bitcoin Hit $3,700, $1.7 Billion Left Exchanges: Here’s Why This is Highly Optimistic

Nick Chong by Nick Chong
11 months ago
in Bitcoin
Reading Time: 3min read
featured image of couple looking at beach for Bitcoin article
Advertisement

Bitcoin has been on a near-unstoppable rally since March’s lows of $3,700. The cryptocurrency at last week’s highs was up more than 170% from the lows, tapping $10,100 after a spectacular jump higher.

This trend has been marked by crypto investors withdrawing their BTC off exchanges en-masse in a strong boost to Bitcoin’s medium-term bull case.

Bitcoin Is Being Withdrawn Off Exchanges En-Masse

Prominent Bitcoiner Jameson Lopp recently shared that per data from Coin Metrics, the amount of BTC held by both BitMEX and Bitfinex — the leading futures exchange and a top spot exchange, respectively — has “reached new lows following the March 12th crash.”

5 BTC + 300 Free Spins for new players & 15 BTC + 35.000 Free Spins every month, only at mBitcasino. Play Now!

Coin Metrics’ chart below indicates that Bitfinex now holds 93,800 BTC — not a small sum, but almost exactly 100,000 coins fewer than it held on March 13th. Similarly, BitMEX’s supply is down to 216,000 BTC from a March peak of 315,000 coins — again a decrease of almost exactly 100,000 coins.

The coins withdrawn have a value that amounts to over $1.7 billion.

The amount of BTC held by BitMEX and Bitfinex has reached new lows following the March 12th crash. Bitfinex now holds 93.8K BTC, down from 193.9k on March 13th. BitMEX’s BTC supply is now down to 216.0K BTC, down from a peak of 315.7K on March 13th. H/T @coinmetrics pic.twitter.com/gesZ3QahcK

— Jameson Lopp (@lopp) May 12, 2020

While the data Lopp mentions excludes other top exchanges, blockchain analytics firm Glassnode noted last month that the aggregate exchange balance has also been decreasing.

This would mean that the sentiment that all of the Bitcoin withdrawn is being sent to other exchanges from the aforementioned incumbents is somewhat incorrect.

On its data, Glassnode remarked that it is a likely sign that Bitcoin investors are turning to a more long-term investment strategy, instead of rapidly trading coins in the hopes of making quick profits.

How This Trend Could Boost Bitcoin

Although Bitcoin seemingly moves without rhyme or reason, the cryptocurrency is just like any other market in one key way: most movements in the price of a free-market asset are based on supply and demand.

supply and demand chart
Basic supply and demand chart from Encyclopedia Britannica

This means that assuming consistent demand, the decrease in the supply of an asset in a market should result in an increase in the equilibrium price. And assuming consistent supply, an increase in demand should also increase prices.

Bitcoin being withdrawn from exchanges en-masse, which decreases the likelihood the owners of coins sell their holdings, decreases the market supply of Bitcoin. Assuming consistent demand, prices should rise.

Now add to this the fact that BTC’s block reward halving just took place. This strongly implies that the supply of coins being sold on the market should decrease even further, further increasing the potential equilibrium price.

Demand for BTC Is Increasing

Simultaneously, analysts say that demand for cryptocurrency is increasing and will continue to increase moving forward.

Alex Kruger, an economist closely tracking the crypto space, recently noted that with legendary macro investor Paul Tudor Jones announcing his support for Bitcoin, “incremental demand” for this space is “coming”:

“The Paul Tudor Jones letter is the single most bullish thing ever written about bitcoin, and it came from Tudor himself. I see it as a game changer. Think many macro investors will follow. Mandate changes and onboarding take time,” the analyst elaborated.

Related Reading: Industry CEO Still Convinced Bitcoin Rockets to $50,000 In 2020: Here’s Why
Photo by Jonathan Leppan on Unsplash
Tags: bitcoin pricebitfinexBitMEXbtcusdBTCUSDTxbtusd
TweetShare20
Nexo Logo
BitStarz Player Lands $2,459,124 Record Win! Could you be next big winner? Win up to $1,000,000 in One Spin at CryptoSlots
Nick Chong

Nick Chong

I am a writer who has been following Bitcoin for years now. My insights and interviews have been featured in leading publications in the industry such as LongHash and Decrypt. I own a small amount of Bitcoin.

Related Posts

Bitcoin BTC

Why Bitcoin below $60K could be a great buying opportunity

1 hour ago
Bitcoin BTC BTCUSD

How Bitcoin back above $60,000 could create a powerful upside move

1 day ago
bitcoin real estate mogul

LA Real Estate Mogul Buys Bitcoin, Accepts BTC For Rent

2 days ago
Bitcoin BTC

Why Bitcoin could favor USD dominance over Digital Yuan

2 days ago
Radio Host Dave Ramsey Warns Bitcoin Investor of His “Vegas Problems”

Radio Host Dave Ramsey Warns Bitcoin Investor of His “Vegas Problems”

2 days ago
Bitcoin Selling Pressure is Declining, Hints Key Glassnode Indicator

Bitcoin Selling Pressure is Declining, Hints Key Glassnode Indicator

2 days ago

Premium Partners

Top Brokers

eToro

eToro

Review · Visit
Evolve Markets

Evolve Markets

Review · Visit
Bybit

Bybit

Review · Visit
ArbiSmart

ArbiSmart

Review · Visit
PrimeXBT

PrimeXBT

Review · Visit
Moneta Markets

Moneta Markets

Review · Visit

Top Casinos

BitStarz

BitStarz

Review · Visit
mBit

mBit

Review · Visit
CryptoGames

CryptoGames

Review · Visit
Bonusfinder DE

Bonusfinder DE

Review · Visit
Bspin

Bspin

Review · Visit
Wolf Bet

Wolf Bet

Review · Visit

Top Sportsbooks

1xBit

1xBit

Review · Visit

Top ICOs

Student Coin

Student Coin

Review · Visit

Token sale

Holdefi

Holdefi

Review · Visit

Press Releases

Two Leading Russian Media and PR Agencies United Into One Full Cycle Advertising Agency

April 9, 2021

Southampton FC Extend Partnership Deal with Blockchain Leader the Coingaming Group

April 9, 2021

Omni.ai Releases Whitepaper for Alternative All-Inclusive and Revenue-Sharing Social Media Platform

April 9, 2021

Newsletter Signup


ABOUT US

NewsBTC is a cryptocurrency news service that covers bitcoin news today, technical analysis & forecasts for bitcoin price and other altcoins. Here at NewsBTC, we are dedicated to enlightening everyone about bitcoin and other cryptocurrencies.

We cover BTC news related to bitcoin exchanges, bitcoin mining and price forecasts for various cryptocurrencies.

COMPANY

  • Advertising
  • Comments Policy
  • Privacy Center
  • Sitemap
  • About Us
  • Contact

Technical Analysis

  • Bitcoin (BTC)
  • Ethereum (ETH)
  • Ripple (XRP)
  • Chainlink (LINK)
  • Cardano (ADA)
  • Tezos (XTZ)

LINKS

Auto Trading Software ▸

Cryptocurrency news

  • Bitcoin
  • Ethereum
  • Ripple
  • Chainlink
  • Cardano
  • EOS
  • Tezos

© 2020 NewsBTC. All Rights Reserved.

  • News
    • Bitcoin
    • Ethereum
    • Ripple
    • Cardano
    • Tezos
    • EOS
    • Chainlink
    • Sponsored
    • Press Releases
  • Analysis
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Cardano (ADA)
    • Chainlink (LINK)
    • Litecoin (LTC)
    • Tezos (XTZ)
    • Zcash (ZEC)
    • EOS
    • YearnFinance (YFI)
  • Education
    • Accepting Bitcoin payments
    • Using Bitcoin
    • What is Bitcoin Mining
    • How to Trade Bitcoin
    • How to Buy Bitcoin
    • Digital Currency Exchange
    • Proof of Existence
    • Is Bitcoin legal?
    • Bitcoin Books
  • Trading Course
  • Directory
    • Crypto Businesses
    • Bitcoin Brokers
    • Casinos
    • Sportsbooks
  • Trade
  • Invest BTC
  • Join STC ICO

© 2020 NewsBTC. All Rights Reserved.

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy Center or Cookie Policy.