Growing BTC streams from centralized exchanges imply that the Bitcoin markets could be facing an accumulation.
The amount of Bitcoin positioned on centralized exchanges has been constantly falling since late May, with about 2,000 BTC (which makes about $66 million at present rates) flowing out of exchanges daily.
Major crypto reports found that Bitcoin reserves on centralized exchanges have dropped back to levels not faced since April, the month that saw BTC blast to its all-time records of about $65,000.
The analysts explained that during the bull rally leading up to this record high, relentless depletion of exchange coin reserves was a major topic. Reports state that the vast majority of this BTC went to the Grayscale GBTC Trust or was accumulated by institutions, driving “a constant net outflow from exchanges.”
Nevertheless, when Bitcoin prices dropped in May, this trend changed as coins were sent to exchanges for liquidation. Today, the net transfer flow has returned 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.” – Net BTC transfer volume to/from exchanges
The research additionally stated that the proportion of on-chain transaction fees represented by exchange deposits decreased to 14% dominance last week, following a brief high to about 17% in May.
On-chain fees associated with withdrawals saw a substantial bounce from 3.7% up to 5.4% this month, implying an increasing preference for accumulation over sales.
The fall in exchange reserves appears to have collided with an uptick in capital flows to decentralized finance protocols over the past fortnight.
According to some sources the total value locked has boosted by 21% since June 26 as it climbed from $92 billion to $111 billion.