Research: users accelerate withdrawal of bitcoins from crypto exchanges

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The HODL strategy continues its triumphant march across the crypto industry. Users prefer to withdraw bitcoins from crypto exchanges and send them to their wallets for long-term storage.

The number of bitcoin hodlers continues to grow. This is the conclusion reached by analyst Lewis Harland, having analyzed the data of the analytical company Glassnode. According to this data, the share of existing bitcoins that have not participated in any transactions for over a year reached its maximum value since January 2016 (62%).

The share of bitcoins that have not moved from their wallets for the past five years also peaked at 22%. The number of addresses that store from 0.1 to 1 BTC continues to grow and reached an all-time high of 2.3 million. After March 12,  when bitcoin dropped sharply in price, this trend significantly acceleration. The number of wallets storing from 1 to 10 BTC grew to 670,000.

The HODL strategy negatively affects crypto-exchanges. Users massively withdraw bitcoins from their exchange accounts. Only in January 2020, the number of bitcoins deposited on exchange accounts exceeded the number of coins withdrawn from exchanges. From February to June, the volume of withdrawals of bitcoins from crypto exchanges invariably exceeded the volume of deposits in bitcoins.

If in the first quarter of the year, holders of the cryptocurrency withdrew 55,000 bitcoins, then in the second quarter the outflow amounted to 174,000 BTC. At the moment, there are 2.64 million BTC on the balance of trading platforms for up to $24.5 billion.

Via: 2Coinfox.info

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