Bitcoin (BTC) Exchange Outflows Hit 5-Year High, Address Activity Shoots 30%
As Bitcoin (BTC) continues to flirt around $40,000 levels, its fundamentals and on-chain metrics are showing significant improvement. On Wednesday, July 28, the Bitcoin blockchain registered the largest ever net outflows in 5 years since 2016.
On this day, the exchange balance dropped by more than 60,000 Bitcoins in total. This is certainly a bullish indicator as a shortage in supply is likely to drive prices higher.
FYI yesterday was the largest day of net outflows from exchanges since mid-2016, with exchange balances dropping by 60,004 BTC.
Watching to see if we get a continued decline of exchange balances in the coming weeks. pic.twitter.com/0REQUPY4pM
— Will Clemente (@WClementeIII) July 29, 2021
At the same time, the number of unique entities interacting with the Bitcoin network has surged significantly over the last week! As on-chain data provider Glassnode reports:
“Bitcon has seen a resurgence in Active Entities over the past week, rising by 30% from 250k to 325k active entities per day. This degree of activity was sustained in July 2020 when $BTC prices were around $11.3k in Q2-2020″.
Whale and Retail Accumulation Continues
While Bitcoin whales have been stacking up major supplies during this consolidation phase, small retail players have also contributed to it. Santiment reports that Bitcoin’s millionaire-tier whale addresses – holding between 100 to 10,000 – BTC has touched a new milestone with a combined holding of 9.19 million.
Since May 2022, these whale addresses have added 170,000 Bitcoins of which a staggering 130,000 comes just in the last 4 weeks. On the other hand, popular market analyst Willy Woo strongly believes that micro-retail investors are playing a crucial role in continuing the bull market. In the latest update, Woo writes:
“A heat map of total coins absorbed by shrimps stacking their sats each day. No signs or a bear market in sight. Shrimps = holders of less than 1 BTC across all of their addresses. Shrimps control the middle and late stages of a bull market”.
Interestingly, the Bitcoin blockchain has touched another milestone with its total users crossing 114 million for the first time. This is the same number of users the internet had during the dot-com boom of 1997, however, it’s growing at a much faster rate.
- Breaking: Metaplanet Expands Treasury With 5,268 BTC Purchase, Climbs to 4th Largest Holder
- BREAKING: Nasdaq Files with US SEC to List BlackRock Bitcoin Premium Income ETF
- Mr Beast, Whales Buy ASTER Token Amid 20% Crash, What’s Next?
- Breaking: U.S. Government Shuts Down After Congress Fails to Pass Funding Bill
- Breaking: BNB Chain Account Hacked With Founder CZ Shown Promoting Meme Coin
- SUI Price Eyes $4.5 as Coinbase Futures Listing Sparks Market Optimism
- Chainlink Price Holds $20 Support Amid Tokenization With DTA Standard Progress – Is $47 Next?
- Analyst Predicts Dogecoin Price Surge as DOGE ETF AUM Hits $20M
- Ethereum Price Eyes $8,600 As Institutions And Whales Double Down
- Dogecoin Price Prediction – Chart Set-Up Highlights Perfect Buying Opportunity With Outflows Backing $0.45
- Bitcoin Price Set to Rebound Ahead of US Government Shutdown, NFP Data
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
