Bitcoin experienced major fluctuations in the first half of the current year. On March 12, the price of Bitcoin fell to $ 3800, before resuming recovery and touching the $ 10 thousand threshold, and returning to decline and fluctuation. The time of writing this article is estimated at $ 9700.

in Tweet One of the famous analysts said that there is a significant decline in the amount of Bitcoin in the exchange’s wallets, and referred to the graphic image provided by the Blockchain Analyst Company, Glassnode, and told the following:

Trading platforms witness large and steady withdrawals of bitcoin, balances have decreased by about 300,000 bitcoin (equivalent to $ 3 billion) since Black Thursday (March 12, 2020) and bitcoin balances on exchanges are the lowest in almost a year from today.

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what does that mean ?

The decline in bitcoin balances in cryptocurrency exchanges can be explained by the fact that investors decided to withdraw their funds away from the exchanges towards their cold wallets.

Many investors and analysts believe that the bitcoin, after the mining reward split, will increase in value as a result of a lack of supply and an increase in demand, which means that the next trend will be an upward trend based on the previous history of the splits, but what we add here is that nothing is certain in the bitcoin market.

The bullish momentum that followed the crash witnessed on March 12, symbolizes investors’ adoption of a long-term investment strategy.

The price action on March 12 shocked investors and crashed one of the largest cryptocurrency exchange BitMEX, which made matters worse and made investors lose faith in centralized platforms.

After this event, many investors and analysts indicated that the decline is likely due to the back-to-back liquidation on the BitMEX trading platform.

In the time following these events, investors were moving their bitcoins away from the trading platforms at a rapid rate.

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The bottom line is that bitcoin balances in trading platforms have fallen due to two explanations:

Or not: It is likely that the vast majority of investors are moving Bitcoin to cold storage wallets, which indicates that investors are taking a long-term investment approach.

secondly: The possibility that investors lost confidence in the central trading platforms, especially after the BitMEX incident, which made them abandon them in droves.

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