Bitcoin exchange outflows dropped from 2.5 million to 2.355 million as 145,000 BTC moved out of exchanges
According to CryptoQuant, from October 15 to November 15, Bitcoin exchange outflows fell from 2.5 million to 2,355 million, the lowest since August 2018. Around 145,000 BTC, worth $ 2.35 billion at price level $ 16,200, moved off-exchange.
Bitcoin exchange outflows dropped from 2.5 million to 2.355 million as 145,000 BTC moved out of exchanges
Bitcoin exchange reserves as of January 2018 | Source: CryptoQuant
During the same period, Bitcoin miners mined around 27,000 BTC, or about $ 437.4 million. Since miners mined 900 BTC daily after the Halving on May 11, 900 BTC multiplied by 30 days equates to 27,000 BTC.
This positive cumulative trend seen in the Bitcoin market shows investors predicting an uptrend after a prolonged halving.
The halving goes on every four years until a fixed supply of Bitcoin is reached at 21 million. After each block reward halved, the number of Bitcoin miners that can be mined per day halves. This means that before the halving in May 2020, around 1,800 BTC has been mined. Until the next halving in 2024, 900 BTC will be mined every day.
The amount of Bitcoins available on exchanges drops significantly as less BTC is mined each day along with the influx of exchange money.
If the demand for Bitcoin continues to increase, then a drop in supply will cause BTC’s value to spike. Hence, many investors can expect BTC price to have a sustained uptrend in the medium term.
Bitcoin’s growing Bitcoin hashrate is another potential catalyst for BTC to look forward to 2021. According to data from Blockchain.com, the Bitcoin blockchain’s hashrate has recovered in recent weeks following the biggest difficulty correction since 2011.
Bitcoin’s 7-day average hashrate rebounded from 106 million terahash per second (TH/s) to 126 million TH/s between November 3 and November 15.
Bitcoin hashrate 7-day average | Source: Blockchain.com
The rapid recovery of Bitcoin hashrate after the rainy season is an optimistic trend as it shows that miners are likely to expect the price of BTC to rise in the medium term.
The combination of growing capital inflows into institutional platforms and a decreasing supply of Bitcoin available on exchanges suggests that demand for BTC is likely to increase as the price approaches all-time highs.
You can see the Bitcoin price here.
Read more:
- Mining Cryptocurrency In China Have Faced Trouble As The Government Crack Down On The Exchange Of Crypto And Yuan
- Citibank Executive Says “Bitcoin Is The New Gold,” Targets At Over $300k Per BTC By The End Of 2021