[2019-09-05] Fewer People Are Sending Bitcoin to Largest Crypto Exchanges

[asajapheth]

I think the shift of attention from major exchanges is a good thing. It would make it easier for smaller exchanges to grow, and in particular for DEXs to be used more. That would also mean that there may not be much sell orders as compared to previous times. A bull run might just be lurking.

[1714748074]

1714748074

[1714748074]

1714748074

[1714748074]

1714748074

[1714748074]

1714748074

[1714748074]

1714748074

[1714748074]

1714748074

[bryant.coleman]

I think the shift of attention from major exchanges is a good thing. It would make it easier for smaller exchanges to grow, and in particular for DEXs to be used more. That would also mean that there may not be much sell orders as compared to previous times. A bull run might just be lurking.

The OP was hinting that trade volume across the exchanges were falling, and smaller exchanges and DEX sites are no exception. The declining prices of altcoins means that fewer and fewer traders are converting their BTC to altcoins or trading with them. Also, BTC exchange rates are rising and therefore less number of users are converting their crypto to USDT.

There is some interesting news from the cryptocurrency market. During the past 24 hours, the Bitcoin dominance has declined from 71.2% to 69.9%. This will give some breathing room for the alts, although I am not sure how long this phase is going to last. In the long term, I don't have much hope for the vast majority of the altcoins and tokens.

[veleten]

its a strange logics , if less people are sending coins to the top exchanges it doesn't mean that the interest is lower
it means exactly that - less unique addresses are connected to the known addresses of the "top exchanges"
there are many exchanges in the world , by the way and hope the researchers are aware that neither Bitfinex nor Bitstamp are top exchanges if we trust this chart:

https://coinmarketcap.com/rankings/exchanges/

this chart includes Coinbase , by the way  but the figures are definitely off  

https://data.bitcoinity.org/markets/volume/30d?c=e&t=b

and people tend to be conservative and many choose convenience vs privacy and security and reuse their addresses
there is no stats as to how many "old" addresses are being used and only tracking some , not all of the "new" addresses
cannot be a metrics to draw any conclusion from , too many unknowns

[BitHodler]

There is some interesting news from the cryptocurrency market. During the past 24 hours, the Bitcoin dominance has declined from 71.2% to 69.9%. This will give some breathing room for the alts, although I am not sure how long this phase is going to last. In the long term, I don't have much hope for the vast majority of the altcoins and tokens.

What's so interesting about that? Dominance isn't longer just a metric to measure where Bitcoin stands against altcoins, but a chart that can be traded where there are resistance and support levels to pay attention to.

As with everything in a bull market, the price goes up a bit, then corrects slightly, then make a higher high, correct, etc. Bitcoin's dominance is no exception in that regard-- the trend continues until the market dynamics hint at a reversal.

Overall, altcoins have never really added anything of value in terms of utility, but they have gone through the roof nonetheless. Once Bitcoin profits are taken, the most likely route are altcoins to maximize profits even further.

[Kakmakr]

I think a lot of this has to do with people rather hoarding their coins than having to risk trading them and losing money. After 2017 the price dropped with more than 80%, so people would rather keep their coins in their wallets than selling it at a lower price and hoping that the price would recover to prices larger than the price that they paid for it after the 2017 peak. 

Some of these exchanges has also tightened their KYC requirements and this is also a huge pain in the ass, so people would rather prefer to avoid these services and going with less known exchanges without all this "red tape". 

[1BTC EQUALS 1CAR]

It's not suprising when we all know that 2018 was the year where everyone got hit with the hardest crash in the  history of crypto. Or some people might be just continuing to hold their bitcoin and like their forgot about their existence and they will only withdraw it when we hit another new all time high. And another thing is that I think 2017 is record-breaking year for bitcoin transactions so we cannot assume that fewer people are sending bitcoin because it might be just like the normal which are the last  few years before 2017.

[1Referee]

I found this useful site that shows you how much capital inflow/outflow there was; https://www.tokenanalyst.io/exchange/BTC/Bitstamp

In the last couple of months the inflow (which means how many coins people sent to Bitstamp) has consistently been higher than what people withdrew. This pretty much shows that while perhaps fewer people are sending coins to an exchange, the actual amounts sent to Bitstamp are large enough to dwarf those who withdraw their coins.

It basically means that smart money is selling and not buying, which explains why we are trending down. Exchanges such as Bitmex and Bitfinex experienced more outflow than inflow, but that's not surprising either given their problems.

[Harlot]

I found this useful site that shows you how much capital inflow/outflow there was; https://www.tokenanalyst.io/exchange/BTC/Bitstamp

In the last couple of months the inflow (which means how many coins people sent to Bitstamp) has consistently been higher than what people withdrew. This pretty much shows that while perhaps fewer people are sending coins to an exchange, the actual amounts sent to Bitstamp are large enough to dwarf those who withdraw their coins.

It basically means that smart money is selling and not buying, which explains why we are trending down. Exchanges such as Bitmex and Bitfinex experienced more outflow than inflow, but that's not surprising either given their problems.

There is also and inflow/outflow indicator in the charts of tradingview but the catch is you have to sign up and create an account to use it because it's not one of those basic indicators. I personally don't use inflow/outflow since we already have volume as an indicator on whether or not the buy side or sell side is winning in every candle. This is the most basic indicator to see if there is really a massive selling going on. But you are right the indicator you have mentioned only tells that there is still a considerable amount of hodling going on. Plus it's obvious why there is no considerable amount of money entering in the market, we are neither in a bullish nor bearish market as we are in a consolidation stage and really this is not the most appealing time to buy more position if you are looking for value for your money.

[1Referee]

I personally don't use inflow/outflow since we already have volume as an indicator on whether or not the buy side or sell side is winning in every candle. This is the most basic indicator to see if there is really a massive selling going on. But you are right the indicator you have mentioned only tells that there is still a considerable amount of hodling going on. Plus it's obvious why there is no considerable amount of money entering in the market, we are neither in a bullish nor bearish market as we are in a consolidation stage and really this is not the most appealing time to buy more position if you are looking for value for your money.

Volume is quite a tricky indicator in my opinion. Even on the more reputable exchanges (i.e. Bitstamp, Coinbase, Kraken) there is clear wash trading happening. Whales tend to legitimately sell or buy x amount of coins, then after that sell or buy into their own orders to even out the ratio between buys and sells to make it appear there is no specific sentiment bias.

The fact that more coins are being deposited on an exchange than withdrawn is more telling. People are selling and/or are preparing to sell.