Glassnode Reports Bitcoin Flowing from Exchanges to HODLer Wallets as BTC Nears Halving Date

According to Glassnode, as the highly anticipated Bitcoin (BTC) halving rapidly approaches, there is a remarkable surge of BTC flowing out of cryptocurrency exchanges and finding its way into the wallets of long-term investors. This insightful analysis comes from Glassnode, a renowned analytics firm in the industry.

Glassnode’s report indicates that the consistent outflow of BTC from exchanges signifies a significant wave of accumulation by HODLers, who are entities with a minimal track record of selling their Bitcoin holdings. These HODLers, regardless of their size, seem to be actively participating in the current market dynamics.

The accumulation trend observed by Glassnode is reminiscent of similar phases witnessed in previous Bitcoin bull cycles. This serves as a promising indicator for the future trajectory of the cryptocurrency.

Additionally, Glassnode’s data reveals that Bitcoin’s illiquid supply has reached an all-time high (ATH). The term “illiquid supply” refers to the quantity of BTC held by entities that have historically maintained a minimum of 75% of their coins without engaging in significant transactions. This data point further strengthens the notion of a substantial accumulation of Bitcoin by long-term holders.

The disparity between exchange balances and the volume of coins held in illiquid wallets is another compelling observation made by Glassnode. The illiquid supply of Bitcoin has surged to a new ATH of 15.2 million BTC this week, while exchange balances have plummeted to their lowest levels since January 2018, currently standing at 2.3 million BTC.

It is worth noting that Bitcoin’s upcoming halving event, which occurs every four years, is expected to take place on April 14 of the following year. During this event, the amount of new BTC issued to miners will be halved, reducing from 6.25 Bitcoin per block to 3.125 Bitcoin per block.

As of the time of writing, Bitcoin is trading at $26,423, exhibiting sideways movement in the past 24 hours.

In summary, the current data and market trends suggest a significant shift of Bitcoin from exchanges to the wallets of long-term investors as the highly anticipated halving event draws nearer. This accumulation phase, along with the record-breaking illiquid supply, provides an optimistic outlook for Bitcoin’s future performance.

Read Also: BlackRock's Spot Bitcoin ETF Application Triggers Reduction in Grayscale Bitcoin Trust Discount

Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial or investment advice. Cryptocurrency investments are subject to market risks, and individuals should seek professional advice before making any investment decisions.

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