After we mentioned in several previous articles on the Arab Bitcoin about the exit of Bitcoin from the trading platforms in a remarkable way.

For the first time since January, more bitcoin deposits have returned to crypto exchanges, according to data from Glassnode.

According to Glassnode data, there are more bitcoins deposited to cryptocurrency exchanges this month.

Which indicates a reversal of the previous trend in which Bitcoin was leaving the cryptocurrency trading platforms, and it was interpreted at the time as a bullish sign indicating that the price of Bitcoin would rise and users would keep it instead of exchanging it and selling it.

As for the return of high bitcoin deposits to trading platforms, it can be interpreted as a bearish signal, but some analysts have different views.

Read:The Central Bank of Kuwait prohibits banks from dealing with cryptocurrencies

According to what the analyst “Simon Peters” indicated, the return of the bitcoin deposit to trading platforms is due to its exchange with alternative digital currencies, which have witnessed a remarkable rise in recent times.

Pedro Febrero, an analyst at Quantum Economics, agreed with Peters and added:

Traders seem to be switching from bitcoin to altcoins.

Peters cited evidence from CoinMarketCap showing how Bitcoin’s dominance has fallen by about 3%, from about 64% to 61%.

He added:

It makes sense that the net inflows of bitcoin into exchanges will start pumping again, as most investors and traders use the exchanges to switch from bitcoin to altcoins.

Why switch to altcoins?

Peters suggests that it is due to the rise of DeFi tokens, such as the COMP coin, which has skyrocketed recently after announcing its inclusion on Coinbase, among several other reasons.

DeFi protocols have boomed this month as the market capitalization of DeFi has skyrocketed by a staggering $1 billion in just the past two weeks, up 33%.

Most decentralized finance protocols are based on Ethereum, which gives traders a reason to inject Bitcoin into exchanges and convert it into DeFi currencies.

Read:Coinbase: EOS network has problems

Peters said:

Crypto investors are smart.

They may invest in tokens that provide them with great returns. This practice is called “return cultivation” by getting rewards or interest through the lending process.

Peters also pointed to the rising market capitalization of stablecoins.

The market cap of the stablecoin Tether exceeded $10 billion this month, and USDC topped $1 billion.

So he told Peters that it’s possible we’ll see some of that liquidity move into bitcoin in times of the upswing.

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