• Bitcoin (BTC) is being moved out of crypto exchanges and into HODLer wallets as the halving event approaches.
• Glassnode data reveals that Bitcoin’s illiquid supply has reached an all-time high.
• The next Bitcoin halving, estimated to take place on April 14, 2021, will reduce the amount of new BTC issued to miners from 6.25 BTC per block to 3.125 BTC per block.
Bitcoin Moving Out Of Exchanges
According to analytics firm Glassnode, a steady rate of Bitcoin (BTC) outflows from exchanges indicates a significant accumulation wave by HODLers or entities with little history of selling as the king crypto’s halving quickly approaches. This observation is further supported by the divergence between exchange balances and coins held in illiquid wallets – those with little to no history of spending – which have reached an all-time high (ATH) at 15.2 million BTC this week while exchange balances have fallen to their lowest levels since January 2018 at 2.3 million BTC.
The upcoming halving event will take place every four years and is estimated to occur on April 14th 2021, reducing the amount of new BTC issued to miners from 6.25 Bitcoin per block down to 3.125 Bitcoin per block.
Glassnode reports that similar accumulation phases preceded other Bitcoin bull market cycles, suggesting that a large number of investors are starting to accumulate more coins in anticipation for what could be another bull run following this upcoming halving event.
Current Price Action
At time of writing, Bitcoin is trading for $26,423 sideways over the last 24 hours according recent data from CoinMarketCap .
It is important for investors to do their due diligence before making any high-risk investments in cryptocurrencies or digital assets and understand that they are taking full responsibility for their transfers and trades as well any losses they may incur when investing in these markets .