Despite the recent correction, in which Bitcoin (BTC) lost around 20% of its value in a week, on-chain data indicates that the liquidity crisis could escalate. In just three days, exchanges saw the issue of more than 23,000 cryptocurrencies valued at more than $1.3 billion. Cryptocoin. com, more than one sleeping whale wallet also took action. Ali Martinez interprets on-chain data.
In the last three days, $1.3 billion worth of Bitcoin has been withdrawn from exchanges
Citing data from blockchain analytics company Glassnode, crypto analyst Ali Martinez summarizes the recently developed Bitcoin withdrawals from cryptocurrency trading platforms. On-chain data reveals that regardless of Bitcoin’s price drop, the number of withdrawals has seen a dramatic increase in the past few days. Overall, more than 23,000 cryptocurrencies were removed from exchanges.
This has coincided with recent reports showing that one of the biggest BTC whales continues on a buying spree and has amassed more than $200 million in assets within days. The entire amount received from the exchanges is still significantly larger than the purchases of these particular whales, which means that some of the withdrawals may be internal transfers. Still, the number of Bitcoins sitting in trading centers has dropped significantly over the days, which should reduce the selling pressure.
BTC investors have not lost yet
As mentioned above, Bitcoin experienced a major correction after reaching its peak price at $69,000 earlier in the week. It lost 20% of its value in about ten days and is 55,705. It set the weekly low at $18. As expected, it hurt investor positions in the meantime. Other data from the analytics company revealed that over 17% of the total BTC supply went “underwater,” meaning only 83% remained in profit.