Bitcoin Exchange Deposit Drop to Lowest Point Since 2016
After the sudden drop on Black Thursday (12 March), Bitcoin (BTC) exchange deposits hit the lowest point since August 2016.
Users start withdrawing their Bitcoin from exchanges after Black Thursday and many big exchanges lose a big share. Bitfinex and Bitmex withdrawals are peaking after the sudden drop of Bitcoin. Users Withdraw 36% Bitcoin from Bitmex after 12 March.
While the number of Bitcoin deposits has decreased drastically the total number of Bitcoin held on exchanges not fall in the same trend. The overall holdings of all exchanges are dropped but still at the levels of Mid 2019.
This is because the numbers of withdrawals from the exchanges are also dropped with the number of deposits.
Large Deposit Volume
The number of deposits has decreased gradually but the volume of the total inflow has not affected much. That means that the average size of Bitcoin deposits has increased.
Another explanation for the decreased deposits is that the Bitcoin halving event is coming. The Bitcoin halving is just now 25 days away (estimated to happen on 10-12 May). The Bitcoin traders belives that the reduced block reward will have positive effects on the price of the Bitcoin. Most traders and investors stay away from exchanges for better safekeeping.
