The number of Bitcoin held on centralized exchanges has consistently fallen since late May, with roughly 2,000 BTC (worth roughly $66 million at current prices) flowing out of exchanges daily.
Glassnode’s July 12 Week On-Chain report found that Bitcoin reserves on centralized exchanges have fallen back to levels not seen since April, the month that saw BTC blast to its all-time high of roughly $65,000.
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The researchers noted that during the bull run leading up to this peak, relentless depletion of exchange coin reserves was a key theme. Glassnode concludes that much of this BTC went to the Grayscale GBTC Trust or was accumulated by institutions, driving “a persistent net outflow from exchanges.”
However, when Bitcoin prices slumped in May, this trend reversed as coins were sent to exchanges for liquidation. Now, the net transfer volume has moved back into negative territory again as outflows increase.
“On a 14-day moving average basis, the last two weeks in particular have seen a more positive return to exchange outflows, at a rate of ~2k BTC per day.”
The report also noted that the proportion of on-chain transaction fees represented by exchange deposits declined to 14% dominance this past week, following a brief peak to around 17% in May.
On-chain fees associated with withdrawals saw a notable bounce from 3.7% up to 5.4% this month, suggesting an increasing preference for accumulation over sales, it added.
Related: Bitcoin price falls under $33K, but on-chain data hints at BTC accumulation
The fall in exchange reserves appears to have coincided with an uptick in capital flows to decentralized finance protocols over the past fortnight.
According to DeFiLlama, the total value locked has increased by 21% since June 26 as it climbed from $92 billion to $111 billion.
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