The outflow of bitcoins from exchanges

The outflow of bitcoins from exchanges is not explained by the bullish sentiment of market participants - Glassnode

The number of bitcoins on exchanges has been steadily falling after the March "Black Thursday", when the cryptocurrency market experienced a rapid collapse. As a result, the balance of exchange wallets reached their lowest levels in more than one year. Since mid-March, the outflow has amounted to over 320,000 BTC, or about 12%.

It is assumed that investors are withdrawing assets to personal wallets for long-term storage, counting on the rise of the market in the future. However, other factors can influence the observed dynamics, according to analysts at Glassnode.

Their doubts are primarily caused by the fact that the withdrawal of bitcoins is unevenly distributed among the exchanges. Some have lost substantial amounts of their wallets, while others have remained unchanged or even increased.

The most active withdrawals are observed on Bitfinex ( 133,000 BTC or -66.6%), BitMEX ( 105,000 BTC or -35.6%) and Huobi (~ 97,000 BTC or -24.6%).

At the same time, Coinbase remains the most popular exchange for storing bitcoin with a balance of 968,000 BTC. Since “Black Thursday” its value has dropped by only 0.2%. Other popular exchanges such as Binance and Bitstamp have even slightly increased the amount of BTC in their wallets during this time.

This suggests that long-term storage cannot be the only explanation for what is happening, and the reason must be related to the exchanges themselves. Analysts doubt that bullish investors have focused their assets on multiple exchanges and are now dumping them.

Loss of trust in certain trading platforms can be a factor. For example, BitMEX experienced interruptions during the sharp market decline in March, which caused users to be unable to respond in a timely manner and lost money. This, however, does not explain why users did not transfer bitcoins to other exchanges, since the dynamics on trading platforms in general is clearly negative.

In addition, some exchanges, such as Huobi and Bitfinex, began to lose assets even before the March crash, from which analysts conclude that we are talking about a longer trend caused by some market forces. By mid-March, the exchange balance of bitcoin wallets had already dropped by more than 47% from the December 2018 highs. For exchanges such as Bitfinex, the March events could only be a catalyst for the previously traced outflow of funds.

Russian Morgan Stanley Bank decided to liquidate

After working for 15 years, Morgan Stanley Bank decided to self-liquidate and refused the license from the Bank of Russia.

The Russian mega-regulator, the Central Bank of the Russian Federation, issued an order today to revoke its banking license from Morgan Stanley Bank LLC after a subsidiary of American banking giant Morgan Stanley decided to liquidate itself.

According to investment startup Revolut, demand was steadily falling before the pandemic.

Revolut, a UK-based cryptocurrency startup, reported a significant increase in the number of clients trading cryptocurrencies. According to statistics released by the payment company, the number of users trading digital assets increased by 68% in April.

The surge in demand for Bitcoin and other cryptocurrencies was preceded by a 52% drop in average trade volumes in March. By the end of April, the amount of purchased digital assets on average by each user had grown by 57%. Before the crisis, the UK also saw a 58% drop in average digital asset purchases from $ 663 to $ 281.

Pharmaceutical giant Bayer hires VeChain to develop a blockchain logistics solution

The Chinese arm of pharmaceutical company Bayer has partnered with the VeChain blockchain project to develop a drug tracking platform.

The system was named CSecure and will allow fixing drug batch numbers in the blockchain. After that, interested participants will be able to follow their movement along the supply chain based on time stamps and user identification information. Such a system excludes the possibility of changing the data by an unauthorized person, the developers say.

In 2019, Bayer China announced a competition to select a blockchain infrastructure provider, which was won by VeChain. The system will use its own VeChain blockchain-as-a-service platform ToolChain. It allows you to adapt different implementations of distributed ledger technology to the needs of a particular client.

“We appreciated the rigor of the pharmaceutical industry while working with Bayer China,” said Sunny Lu, CEO of VeChain.