Since November 2020, centralized exchanges have witnessed their busiest week of Bitcoin withdrawals. Bitcoin outflows from centralized exchanges have reached a new record for the year, with around 40,000 BTC withdrawn in the last seven days.
According to Glassnode’s The Week On-Chain analysis from August 2, Bitcoin outflows have risen to a rate greater than 100,000 BTC per month for only the third time since September 2019.
Following the devastating Black Thursday crisis, outflows soared to almost 150,000 BTC each month by the end of April 2020. Crypto prices fell by more than 50% in less than two days after then-US President Trump announced a travel ban between Europe and the US in March as the coronavirus pandemic intensified. Despite the steep drop, Bitcoin has recovered by 150 per cent by the end of May 2020, driving heavy accumulation.
Outflows approached 150,000 BTC per month again in November 2020. Bitcoin rallied to challenge its then-record price high of $20,000 before rallying to new all-time highs the following month. Throughout much of 2021, Glassnode observes contrasting trends between Coinbase and Binance, with Coinbase experiencing considerable outflows. Binance has been the largest beneficiary of BTC.
Binance’s reserves, on the other hand, are beginning to dwindle, with 37,500 BTC departing the exchange in the last week. In June, Coinbase balances remained stable. While the exchange got 30,000 BTC in the middle of July, 31,000 BTC has deleted this week.
The on-chain analytics company uses its Liveliness metric to spot accumulation tendencies when it comes to macro sentiment.
Following May’s rapid sell-off, the metric, which measures the ratio of the total of currency days destroyed to the sum of all coin days ever created, shows a broad accumulation trend.
Pantera Capital CEO Dan Morehead believes that the Ethereum platform’s future applications, fewer environmental impact, and technical enhancements will help the ether token continue to surpass bitcoin.
Morehead told the Reuters Global Markets Forum that ether, as a newer token, has more room to grow than bitcoin. The newest Ethereum Improvement Proposal (EIP) 1559 upgrade will allow it to trade more like a fixed asset. Ether, the world’s second-largest cryptocurrency, has more than doubled its price in 2021, closing at $2,608 on Monday, compared to bitcoin’s 46 per cent increase to $39,166.
According to a tracker, the market valuation of ether on Monday was around $306 billion, less than half of bitcoin’s $737 billion.
Morehead believes bitcoin will conclude 2021 between $80,000 and $90,000 and surpass $120,000 within a year. He claims that increasingly widespread adoption may take it as high as $700,000 in the next decade.