Despite the recent correction in which bitcoin lost around 20% of its value in a week, on-chain data suggests the liquidity crunch could get worse. In just three days, the exchanges saw more than 23,000 coins take off, worth more than $ 1.3 billion.
$ 1.3 billion in BTC withdrawn from trading in three days
Citing data from blockchain analytics firm Glassnode, crypto analyst Ali Martinez describe the recently improved bitcoin withdrawals on digital asset trading platforms.
News on the channel revealed that the number of withdrawals had increased dramatically over the past few days, regardless of the drop in bitcoin prices. In total, more than 23,000 coins were withdrawn from the stock exchanges.
This coincided with recent reports that one of BTC’s largest whales had resumed their buying frenzy, racking up more than $ 200 million in assets within days.
The total amount withdrawn from the trade is still significantly larger than the purchases of these particular whales, meaning that some of the withdrawals may have been internal transfers.
Nonetheless, this still means that the number of bitcoins on the trading platforms has dropped significantly in a matter of days, which should reduce the selling pressure.
Bitcoin investors in profit
As mentioned above, the main cryptocurrency has undergone a massive correction since its peak hit $ 69,000 early last week. Within ten days, the asset lost 20% of its value and fell below $ 56,000 earlier today.
Predictably, this hurt investors and their positions. Other data from the analytics company revealed that more than 17% of the total BTC supply went ‘underwater’, meaning only 83% remained profitable.
When the #Bitcoins the market is experiencing a massive sell-off, the change in profitable supply indicates how many coins have a chain base cost higher than the current price.
Since ATH, more than 17% of $ BTC the offer fell under water, leaving 83% of the offer in profit.
– glassnode (@glassnode) November 19, 2021
This, however, has not deterred long term holders (LTH). Glassnode explained that these investors refused to panic to sell their coins.
“After peaking at 13.5 million BTC, LTHs have only distributed 100,000 BTC in the past month, which is only 0.7% of their total holdings.”
The company added that a slightly lower percentage of LTH is profitable compared to the overall picture – 78.7%. Nonetheless, Glassnode claimed that most of the purchases made around the last price peak came from so-called short-term holders, and now stand at unrealized losses.
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