The market is green this week.
Bitcoin is currently trading just above $9,600, up 1.46% but on the back of $1.6 billion spot trading volume. While the price is trending up, the BTC balance on cryptocurrency exchanges continues to decline to hit new 1-year lows. Beating the low hit on June 19th, 2020 at 2,623,005.552 BTC.
On June 22nd, bitcoin balance on exchanges dropped to the 1-year low of 2,622,984.499 BTC, as per Glassnode.
This downtrend could be investors moving their coins off the exchanges to private wallets to hodl instead of taking profits.
“If we get a legit government order to close your account and hand over the coins, you can say goodbye to your precious savings. Great thing about crypto is you can self custody,” Powell warned.
With retail investors accumulating, as evident from the growing number of addresses and over 60% of bitcoin addresses not active for over a year, the preference seems to be of a higher-timeframe these days.
This drop on BTC exchange balance could also be because of regulatory reasons as the Financial Conduct Authority (FCA) has given an ultimatum to crypto companies to apply for registration by the end of this month while earlier this month China started freezing bank accounts over crypto and fiat assets engaged in illegal activity.
This downtrend in bitcoin exchange balance could also be the indication that the next bull market is almost here.
“BUY BTC when whales send bitcoins out of the exchange. The BULL market usually starts four months after the exchange average withdrawal hits year-high,” said Ki Young Ju, CEO of CryptoQuant.
Bitcoin bull market is expected to start in mid-July as per the bitcoin whales movement on the exchanges.
Based on the data from 2013, when BTC whales are active, the market shows that the leading cryptocurrency is in an accumulation phase.
Meanwhile, the 3-month realized volatility of bitcoin is about to drop below the 2 months implied volatility for the first time in several months.