Bitcoin exchange deposits reached their lowest level in 2 years
The network activity for Bitcoin (BTC), like the price decline, also hits several years’ lowest level as the current crypto winter continues. According to Glassnode’s on-chain data, the total number of foreign currency deposits (7-day moving average) in 2013 reached July 12, the lowest level since July 2020.
The number of Bitcoin exchange deposits has been declining since reaching a peak of almost 5,100 in May 2021. In about 14 months, the total amount had plummeted by more than 60%. Bitcoin’s value has fallen over 70% during the last crypto winter.
On July 13, 2022, the global market value of cryptocurrency was $ 421 billion, the lowest level in 8 months. The total number of active Bitcoin addresses has fallen in recent market downturns.
In recent months, retail and institutional interest in bitcoin and other cryptocurrency assets has declined. According to CoinShare’s weekly report on digital asset fund flows, Bitcoin’s investment products attracted outflows of $ 1.7 million last week.
The worldwide value of Bitcoin assets managed by custodians has fallen to $ 24.6 billion today, down from almost $ 50 billion in November 2021.
Bitcoin supply at a loss
On Wednesday, BTC did not rise above $ 20,000 in value. A significant amount of short- and long-term supply is now facing huge unrealized losses in the midst of BTC’s downward price fluctuations since November 2021.
“The current market structure has many characteristics of a bear market, when the most confident groups, long-term owners and miners are forced to sell. The supply volume currently stands at 44.7 percent loss, and the majority comes from the category long-term owners. However, this is still to a lesser extent than previous bear cycles, Glassnode said in its weekly chain analysis.
Number of active bitcoin addresses fell by 13%
In November 2021, the total number of active BTC addresses per day reached almost 1 million. According to Glassnode’s weekly analysis report on the chain, the current figure is around 870,000 per day, a decrease of almost 13% in the last seven months.
During that time, the price of Bitcoin has fallen by more than 70%. The total number of BTC addresses in losses reached a record high of 18.96 million on 5 July 2022, during the correction of the crypto market and a significant decrease in network activity.
“BTC address activity has fallen by 13% from over 1 million per day in November to just 870,000 per day today. This indicates that new users are hardly increasing, if at all. The activity in the chain is remarkably subdued, and it is difficult to argue otherwise.
Over the past year, it seems that most marginal buyers and sellers have finally admitted and been removed from the network. Because there are few new players on the Bitcoin demand side, prices continue to fall until these HODLs can set a floor. “Glasnode’s study explains.
A massive increase in the number of old BTCs has been observed, with Bitcoin addresses that have been inactive for more than 10 years now reaching a record high of 2.46 million, according to Finance Magnates.
Bitcoin exchange flows
In recent weeks, whales have moved their BTC assets to crypto exchanges to take advantage of the bearish market conditions, as the total BTC stock market balance reached its lowest level in about 48 months.
Large-scale net withdrawals continue to be recorded in foreign exchange reserves, with aggregate balances falling to levels not seen since July 2018. Since March 2020, the total balance on exchanges has been -750k BTC.
According to a report, the cryptocurrency market saw record bitcoin withdrawals in the fourth quarter of last year. A total of 142.5k BTC was withdrawn over three months, or 18.8 percent of the entire supply, it added.
