The number of Bitcoin held on centralized exchanges has consistently fallen since late May, with roughly 2k BTC [worth roughly $66 Mln at the present prices] flowing out of exchanges daily.
In line with Glassnode’s 12th July On-Chain report, Bitcoin reserves on centralized exchanges have fallen back to levels not seen since April, the month that saw Bitcoin [BTC] blast to its all-time high of roughly $65k.
The researchers outlined that in the Bull Run leading up to the present peak, relentless depletion of exchange coin reserves was a key theme. Glassnode concludes that much of this BTC visited the Grayscale GBTC Trust or was accumulated by institutions, driving “a persistent net outflow from exchanges.”
Additionally, when Bitcoin prices dropped in May, this trend reversed as coins were transferred to exchanges for liquidation. Presently, online transfer volume has moved back to negative territory again as outflows increase.
“On a 14-day moving average basis, the last fortnight especially have seen a more positive return to exchange outflows, at a rate of ~2k BTC per day.”
The report also revealed that the proportion of on-chain transaction fees represented by exchange deposits declined to 14% dominance this past week, following a quick peak to around 17% in May.
On-chain fees related to withdrawals saw a notable bounce from 3.7% up to 5.4% this month, outlining an increasing preference for accumulation over sales, it explained.
The fall in exchange reserves appears to possess coincided with an uptick in capital flows to DeFi protocols over the past fortnight.
In line with DeFiLlama, the entire value locked has increased by 21% since 26th June as it climbed from $92 Bln to $111 Bln.