A report by the Bitfinex exchange says that the volume of cryptocurrency on trading platforms has declined. Investors have been taking bitcoins offline since March 2020.
After Black Thursday, the trend of BTC outflow from trading platforms intensified from month to month. Since then, the number of bitcoins on exchanges has dropped 32% from 3.1 million to 2.1 million BTC.
Researchers estimate that traders are now storing about 11% of the digital currency’s market supply on crypto platforms.
In the spring of 2020, investors stored more than 17% of BTC supply on exchanges. Bitfinex analysts recorded a redistribution of funds between centralized and decentralized exchanges (DEX).
If hodlers prefer to send coins to offline storage, speculators replenish DeFi protocols. In addition, some bitcoins have moved into cryptosphere-oriented investment products.
The Bitfinex exchange analyzed data from CoinShares and concluded that last week the inflow of institutional capital into BTC funds amounted to $137 million.
In four weeks, crypto funds were replenished with bitcoins totaling up to $742 million – the highest figure since the fourth quarter of 2021.