Bitcoin’s latest rally towards the $42k mark prompted the market to take a deep dive into the cryptocurrency’s on-chain performance. This focus on Bitcoin was evidenced in Glassnode’s latest report which talked about the spending and accumulation behavior of the world’s largest cryptocurrency. The analyzed sample space included a starting trading price at $35,326 on Monday with an intra-day high of $42,388.
The report noted that this week’s rally had been witness to some holders taking exit liquidity, thereby adding to the increased trading volume. Over $2 billion in profits were realized on-chain this week as Bitcoin broke the $42k mark to fall right back down to the $38,000 range later. During the same time, Bitcoin outflows from centralized exchanges surged to a year-to-date high.
According to Glassnode, over 40,000 BTC were withdrawn in the time period between July 30 and August 3. The report said:
“The trend for Binance appears to have stalled and started to reverse, with a total outflow of approximately 37.5k BTC this week. Coinbase balances plateaued in June, saw a large deposit of around 30k BTC in mid-July, and this week an outflow of 31k BTC. This has largely unwound all inflows since mid-May.”
Experts believe that Bitcoin’s current price action could signal the start of a new market atmosphere. Since its fall from $60,000, Bitcoin has not been able to sustain a momentum strong enough to retrace. As it stands, bitcoin was trading at the lower end of $38,000 which may just be the support increase the cryptocurrency needs. The next hike may need to come soon as Bitcoin’s on-chain activities continued at historically low rates.
At the time of writing, Bitcoin was trading for $38,500 after a 3 percent hourly dip. The market cap was holding strong at $722.84 billion while the trading volume steadied itself at $25.19 billion.
