Bitcoin outflows from centralized exchanges show that the Bitcoin markets could be in an accumulation.
The amount of Bitcoin held on centralized exchanges has constantly been falling since late May, with close to 2000 Bitcoin flowing out of exchanges every day.
The July 12 Week On-Chain report by Glassnode found that BTC reserves on centralized exchanges have fallen back to levels not seen since April, the month that saw BTC blast to its all-time high of roughly USD 65,000.
The Bull Run leading up to this peak relentless depletion of exchange coin reserves was a key theme. Glassnode concludes that much of this Bitcoin went to the Grayscale GBTC Trust or was accumulated by institutions, driving a persistent net outflow from exchanges.
Furthermore when Bitcoin prices slumped in May, this trend overturned as coins were sent to exchanges for liquidation. The net transfer volume has moved back into negative territory again as outflows grows. The report also mentioned that the proportion of on-chain transaction fees represented by exchange deposits reduced to 14% dominance this past week, following a brief peak in May at around 17%.
