According to Glassnode’s August 2 “The Week on-Chain” report, Bitcoin withdrawals from centralized exchanges have climbed to record levels over the past week.
The on-chain analytics firm revealed that 40,000 Bitcoins were withdrawn from exchanges in the past seven days. This raises the monthly outflow to 100,000 BTC for the third time since September 2019. Glassnode wrote:
This represents a near full retracement of the significant inflow volume observed during the May sell-off.
With its current market value of $38,500, about $3.85 billion worth of Bitcoin has left the coffers of centralized exchanges in the past month. Glassnode asserted that only 13.2% of the Bitcoins in circulation are currently held on exchanges, a record low for 2021.
Outflows peaked at almost 150,000 BTC monthly following the “Black Thursday” crash in late April, 2020; a few days after the then U.S. President Donald Trump issued a travel ban between Europe and the U.S. The entire crypto market crashed by over 50% but rebounded in May.
In November 2020, outflows also came close to 150,000 BTC as Bitcoin rallied to a new high.
Amid the major outflows from crypto exchanges, Glassnode reported a divergent trend between Coinbase and Binance in 2021. While Coinbase has witnessed significant outflows, Binance experienced major inflows. However, it appears Binance’s fortunes are beginning to reverse as over 37,500 BTC exited the exchange in the past week.