Data from glassnode, an on-chain analytics company, suggests that investors are still accumulating Bitcoin as $1.2 billion worth of the flagship crypto left exchanges despite crashing over 18% in one-hour last week Tuesday.
Bitcoin experienced a market crash last week Tuesday that sent it crashing from a high of $52,850, according to coinmarketcap to trade as low as $43,285, representing an 18% decline. The decline happened on the day El Salvador officially made Bitcoin a legal tender in the country.
As reported by Nairametrics, the Latin American country’s President, Nayib Bukele, had announced the purchase of 400 BTC before the crash and when the crash happened, he announced the purchase of additional 150 BTC in an effort to “buy the dip.”
Glassnode alerts is one of the official Twitter accounts for the on-chain analytics company and it gives updates on on-chain analytics statistics on a daily and weekly basis. The account in the early hours of the day released an update on the weekly on-chain exchange flow for Bitcoin, Ether and USDT.
According to the tweet, Bitcoin had a netflow of negative $1.2 billion, which means that $1.2 billion worth of Bitcoin left centralized exchanges, with $9.6 billion going in and $10.8 billion going out. For Ether, it had a negative net flow of $545.4 million and also for USDT which showed a negative exchange flow of $361.1 million, all suggesting accumulation.
The account also tweeted another statistic which is the number of addresses holding 0.1+ BTC. According to the tweet, this statistic just hit a 4-month high of 3,234,827, suggesting that more people are holding more than $4,450 worth of Bitcoin as of the time of this writing, in their wallet.
What you should know
Bitcoin has been recovering from the earlier market crash in May which sent the flagship cryptocurrency to trade below $30,000, losing 50% of its value.
The market in the month of August rallied to break above the $50,000 trading range and other Altcoin’s posted double figure gains.
The market however took a dip in what would appear to be profit taking from whales last week Tuesday which caused a liquidation event in which over $3.22 billion in longs was lost.
Bitcoin is currently trading $44,500, down 3.18% for the day and 14% for the week, as of the time of this writing.