Charts created by popular analytics provider Glassnode show that users now prefer to sit tight on their Bitcoin and hold it in cold storage vaults, instead of depositing it to exchanges to sell.
Besides, the number of users on the BTC network is growing as co-coiners are buying the dip.
Bitcoin withdrawals from exchanges surging, BTC deposits hit another low
Charts provided by Glassnode data aggregator indicate that investors are bullish on the world’s flagship digital currency.
As per the 7-MA graph, crypto exchanges are seeing massive Bitcoin withdrawals at the moment, reaching a yearly high. The last time such big Bitcoin withdrawals were noticed back in March 2020, they were twice as high on the chart.
Another chart by Glassnode demonstrates a substantial drop in Bitcoin exchange deposits. Those have reached a four-month low (7-day MA) and now total 2,645.738.
Number of users on the BTC network grows as no-coiners are buying the dip
Crypto trader and entrepreneur Willy Woo has also shared a chart provided by Glassnode. Showing it, the trader specifies that the number of new entities on the BTC network is increasing.
The chart shows that the current massive increase of new Bitcoin users can be compared to December 2017-January 2018, before the start of the two-year crypto winter.
“N-coiners are buying the Bitcoin dip,” Woo has specified. Since May 10, Bitcoin has been on the decline: first, after Elon Musk tweeted that Tesla has stopped accepting BTC as a means of exchange for e-cars, then due to China cracking down on crypto businesses and Bitcoin mining.
At press time, the biggest crypto asset is trading below the crucial $40,000 line, changing hands at $36,594, as per data provided by CoinMarketCap.