Bitcoin (BTC / USD) balances on the exchanges are at an annual low with only 2.5 million in exchange wallets. Coinbase has the largest outflow and Binance is the only exchange that tracks cash inflows rather than outflows, analyst Glassnode reported. There was a balance of 2.5 million in May when the price of Bitcoin hit $ 62,000.
Causes of drainage
Bitcoin and altcoin price actions are the main factor responsible for the trend. The recent market consolidation has resulted in the owners redistributing funds rather than greatly increasing the inflow of foreign currency. As old addresses have taken most of the profits from investors, their hands have grown “younger”. On average, the profit was a whopping 250-300%.
Bitcoin hashrate continues to rise
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Glassnode reported that the Bitcoin hash rate is gradually rising from a low in July as miners move from China and get to work. This also means that miners are selling. The service notes that given the global production constraints in manufacturing ASIC chips, there isn’t much competition among miners. Glassnode adds:
“As a result, USD revenue per hash of miners has now risen back to the level of USD 380,000 per exahash in July 2019, making operational miners exceptionally profitable on a historical basis.”
The miners spent a total of $ 2,900 BTC worth $ 145 million as Bitcoin surged over $ 50,000 in the past week. Given that most funds do not disclose the volume they buy or sell or the actual transactions, the role of institutional investors is not entirely clear. Other causes of outflow are the introduction of Bitcoin as legal tender by El Salvador. The government recently bought BTC 400. To support the president’s progressive decision and vision, a number of social media influencers even encouraged their followers to buy BTC.
More and more people are choosing the king of cryptocurrency as a hedging or investment vehicle, apart from investors who do not sell or take profits. Last week the digital asset market saw large inflows with up to $ 100 million invested in the sector. The inflow was $ 140 million for three consecutive weeks. Currently, the altcoin market has a record market share of 35%.
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