The exchanges' bitcoin balance suffered a sharp drop on Thursday (29) and reached the lowest level since the end of 2018, according to data from Glassnode disclosed by analyst William Clemente. He notes that two massive outflows of currency from brokerages — a lot of 23,530 BTC in the morning and another of 40,181 BTC in the afternoon — were responsible for the sharp drop in the stock to 2.4 million BTC for the first time in more than three years . Data like this is bullish for the market as it indicates that cryptocurrencies are moving off exchanges to be kept safe in the custody of investors themselves, signaling that they have no interest in selling them anytime soon. When the opposite happens, that is, a large amount of BTCs enters the brokers, it is possible to assume that there is an interest of the user to return the currencies to the market. However, it is not possible to confirm that these cryptocurrencies have left the exchanges' possession. The analyst who released the data, William Clemente, does not believe that all currencies ended up in the hands of investors. “On Thursday, there were reports of massive exits from several exchanges, including more than 108K BTC from Kraken which caused its balance to drop to 62,859 BTC. I am highly skeptical of these streams. I suspect it's just an internal shuffling of the month-end routine,” he wrote in his weekly newsletter. In response to a Twitter user, Kraken confirmed that “a planned movement of funds” took place, justifying the 40% drop in its bitcoin stock.
However, the balances accumulated by several brokers were already declining throughout the week, indicating an accumulation trend, according to Clemente. Excluding Thursday's data, exchanges lost 66,655 BTC from their addresses for the week. According to data from Bybt, the bitcoin balance of Binance, which is now the world's largest brokerage by volume, went from 343,000 BTC on Monday to a current 298,000 on Friday, a drop of 13%. Coinbase's inventory also fell by 6% in the period. It's still unclear what the fate of these cryptocurrencies will be, but data indicates that the bitcoin network has stirred again after the currency finally broke through the $40,000 resistance on Monday. There was a 30% growth in the number of entities active daily in the BTC network, jumping from 250,000 to 325,000 in one week, according to glassnode. Analysts characterize “entity” as a group of addresses controlled by a person or institution. This Friday bitcoin is down 2.4%, dropping to US$ 39 thousand. According to the Bitcoin Price Index (IPB), the currency is traded at R$ 201,000 in Brazil.