Number of Bitcoin Exchange Deposits Has Hit a New Low

Crypto exchanges are seeing massive Bitcoin withdrawals at the moment, reaching a new yearly high. At the same time, the number of Bitcoin deposits has hit a new low as large amounts of users are withdrawing the flagship cryptocurrency from exchanges.

Number of Bitcoin Deposits Has Dropped to a 4-month Low

Data analytics firm Glassnode’s latest report indicates that crypto investors are now preferring to hold their Bitcoin in cold storage wallets, instead of depositing it to trading platforms to sell.

Apparently, crypto exchanges are seeing a large amount of Bitcoin withdrawals, reaching a yearly high. The last time such big Bitcoin withdrawals were seen after the Black Thursday crash in mid-March 2020.

Massive outflows of #bitcoin from exchanges. Bullish pic.twitter.com/Cjtk9PR6aj

— marc friedrich 🟠 (@marcfriedrich7) May 24, 2021

At the same time, the number of deposits on crypto exchanges has dropped to a 4-month low of 2,645.738.

The amount of Bitcoin held in all exchanges’ wallets has seen an increase since hitting a yearly low in late April.

This only indicates that investors are seemingly bullish on the world’s leading cryptocurrency.

Usually, investors rush to deposit their Bitcoins to cryptocurrency exchanges with the intention to sell their coins. The increased transfers to cold storage wallets indicate that investors are in it for the long haul.

User Growth on the BTC Network is Growing

With Bitcoin’s growing userbase and declining exchange deposits, the flagship cryptocurrency’s bull run is still intact, says prominent crypto analyst Willy Woo. Per the strategist, Bitcoin’s bull market will endure and resume.

He made his remarks after indicating that BTC’s network has kept expanding despite the recent market crash.

Citing the data from Glassnode Woo outlines that Bitcoin’s network user growth has  kept increasing in the past several weeks with “no-coiners taking this opportunity to buy the dip.”

Chart: User growth on the BTC network.

No-coiners are taking this opportunity to buy the dip.

In case you’re wondering, the bull market is very much intact.

Data: @glassnode pic.twitter.com/4KtlscCs43

— Willy Woo (@woonomic) May 24, 2021

Ever since Bitcoin peaked at $65,000 in mid-April, the cryptocurrency has been on a downfall. After sliding below $60,000, the flagship cryptocurrency went further downwards following negative news from Tesla and China’s ban on cryptocurrency mining.

Consequently, BTC slumped by $35,000 from its ATH to a low of $30,000 reached recently. Despite recovering over $10,000, the digital asset still fails to reclaim $40,000.