Net transfer volume of bitcoin out of exchanges has seen outflow dominance climb to an estimated 2,000 BTC in daily withdrawals.
According to On-chain market analysis company Glassnode, July has seen more bitcoin being withdrawn from exchanges than being sent to exchanges.
In a recent report, Glassnode stated that a common trend over 2020 and Q1 of 2021, was the depletion of bitcoin reserves from exchanges.
However, since the recent all-time high of $64,000, bitcoin inflows to exchanges dramatically increased. Glassnode states that “Throughout May, this trend dramatically reversed as a flood of BTC was deposited to exchanges, alongside the market selling off by ~50%.”
Recent analysis indicates that exchange inflows have reversed again, with an average of 2,000 BTC being withdrawn from exchanges daily.
BTC balance on exchanges
Glassnode also reported that the total bitcoin balance on exchanges had decreased by 40,000 BTC over the last three weeks. The amount represents 28% of total inflows from the local low, which was set in April. Inflows during bitcoin’s rally to a new high saw 140,000 BTC deposited to exchanges. Currently, exchanges hold approximately 2.56 million bitcoin.
Other notable insights include early signs of miner recovery. The total hash rate appears to be recovering. The hash-rate which recently saw a 55% decline, managed to claw back 16% of that. This indicates that roughly 29% of the affected hash-power has come back online.
The increase in mining hash rate comes as miners move their operations out of China, following its huge mining ban. The United States has seen companies look to its shores to begin mining operations, with Texas being a favorable destination due to its crypto-friendly government officials and cheap electricity.
A key focus for bitcoin mining remains sustainability and electricity consumption. With companies looking at different ways of mining the cryptocurrency. Including Hydroelectric power plants and microgrids.