BTC Exchange Deposits Reach the Lowest Level in 2 Years

Thursday, 25/08/2022 | 11:02 GMT by Bilal Jafar
  • The figure has dipped sharply since November 2021.
  • Bitcoin stayed above $21,000 on 25 August.
Bitcoin(BTC)

In the latest data published by Glassnode, the on-chain analytics platform highlighted that the number of BTC exchange deposits has significantly decreased in the past few weeks. The 7-day moving average of Bitcoin exchange deposits touched 1,921 on Thursday, which is the lowest level since July 2020.

Due to the latest dip in the price of the world’s largest cryptocurrency, profitability across the BTC network has plunged. On 25 August, the total number of Bitcoin addresses in a loss touched 18.04 million, which is the highest level in one month.

After touching an all-time high of $67,000 in November 2021, BTC lost more than 65% of its value in the following 6 months. While the crypto asset has seen a marginal recovery in the last few months, its market cap is still down by approximately 60%, compared to November 2021.

In terms of weekly performance, BTC remained one of the worst-performing assets among the top 5. With a market cap of over $415 billion, BTC now accounts for almost 40% of the total market value of digital currencies.

Volatility

Volatility across the crypto market has remained low in the past few days. Commenting on the recent macroeconomic events and their potential impact on Bitcoin, Marcus Sotiriou, an Analyst at GlobalBlock, said: “Volatility remains low in the crypto market, as investors are bracing for tomorrow’s critical Jackson Hole speech. The number of banks around the world offering Bitcoin trading continues to climb, as Sullivan Bank, which has been around since 1895, will now let its customers buy Bitcoin.”

“Also, Malaysia’s largest investment bank, Kenanga Investment Bank Berhad, has partnered with Ant Group to launch a bitcoin and crypto-friendly 'super app'. This app will integrate all the bank’s financial services onto one platform, including a digital wallet. The bank has over 500,000 users and wants to distribute its product to other banks as well. The increase in banks adopting digital assets shows how despite sentiment being bearish, fundamentals of the crypto industry continue to grow,” Sotiriou added.

In the latest data published by Glassnode, the on-chain analytics platform highlighted that the number of BTC exchange deposits has significantly decreased in the past few weeks. The 7-day moving average of Bitcoin exchange deposits touched 1,921 on Thursday, which is the lowest level since July 2020.

Due to the latest dip in the price of the world’s largest cryptocurrency, profitability across the BTC network has plunged. On 25 August, the total number of Bitcoin addresses in a loss touched 18.04 million, which is the highest level in one month.

After touching an all-time high of $67,000 in November 2021, BTC lost more than 65% of its value in the following 6 months. While the crypto asset has seen a marginal recovery in the last few months, its market cap is still down by approximately 60%, compared to November 2021.

In terms of weekly performance, BTC remained one of the worst-performing assets among the top 5. With a market cap of over $415 billion, BTC now accounts for almost 40% of the total market value of digital currencies.

Volatility

Volatility across the crypto market has remained low in the past few days. Commenting on the recent macroeconomic events and their potential impact on Bitcoin, Marcus Sotiriou, an Analyst at GlobalBlock, said: “Volatility remains low in the crypto market, as investors are bracing for tomorrow’s critical Jackson Hole speech. The number of banks around the world offering Bitcoin trading continues to climb, as Sullivan Bank, which has been around since 1895, will now let its customers buy Bitcoin.”

“Also, Malaysia’s largest investment bank, Kenanga Investment Bank Berhad, has partnered with Ant Group to launch a bitcoin and crypto-friendly 'super app'. This app will integrate all the bank’s financial services onto one platform, including a digital wallet. The bank has over 500,000 users and wants to distribute its product to other banks as well. The increase in banks adopting digital assets shows how despite sentiment being bearish, fundamentals of the crypto industry continue to grow,” Sotiriou added.

About the Author: Bilal Jafar
Bilal Jafar
  • 2440 Articles
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About the Author: Bilal Jafar
Bilal Jafar holds an MBA in Finance. In a professional career of more than 8 years, Jafar covered the evolution of FX, Cryptocurrencies, and Fintech. He started his career as a financial markets analyst and worked in different positions in the global media sector. Jafar writes about diverse topics within FX, Crypto, and the financial technology market.
  • 2440 Articles
  • 87 Followers

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