According to data provided by Glassnode, Bitcoin (BTC) holders are actively withdrawing their funds from exchanges. This indicates that BTC might be in the middle of another accumulation stage before a possible rally.
Following the money
Outflows from major exchanges have been increasing since March 18. As a result, their Bitcoin balances reached the lowest level in eight months.
The situation was completely opposite on the verge of the March 12 crash that terrified the crypto industry. Four days prior to the 48 percent plunge, there was a rapid increase in inflows. For those who were watching, this was a tell-tale sign that whales were readying to dump a massive amount of coins.
Not your keys, not your Bitcoin
The exodus of coins from major exchanges could also indicate that some investors are losing faith in centralized exchanges that appeared to be stronger than ever just two months ago. According to a LongHash report, Coinbase had nearly 1 mln BTC in its cold wallets at the end of January.
Despite the dominance of crypto exchanges, entrusting third parties with your money goes against the idea of monetary sovereignty. Hence, many Bitcoin O.G. in the likes of Proof of Keys leader Trace Mayer urge BTC holders to take control of their coins.
Subscribe to U.Today on Twitter and get involved in all top daily crypto news, stories and price predictions!