Cryptocurrency exchange outflows have over the last few days, after the prices of most cryptocurrencies plunged in a market crash that saw the total market capitalization of the space drop from $2.2 trillion to $1.5 trillion. On-chain analyst Willy Woo has pointed out user growth on the network suggests the bull market hasn’t been affected.
Data shared by the analyst revealed user growth on the BTC network has surged as “no-coiners” were taking advantage of the price drop to buy BTC. Per his words, the bull market is “very much intact.”
He added that BTC’s user count has “roughly doubled every year since inception a dozen years ago,” and the peak for this year is expected to “end at levels MUCH higher than the 2017 peak.” This, he implied, suggests the market is “just warming up.”
Seemingly suggesting a recovery is coming, data from blockchain analytics firm Glassnode shows massive bitcoin outflows were seen as prices started dropping and kept on increasing steadily. The shared data seemingly suggests that some HODLers bought the dip, and moved the funds to wallets under their control to hold for a longer period.
The recent cryptocurrency market crash started shortly after Tesla CEO Elon Musk revealed in an announcement that the electric car maker would no longer accept bitcoin payments over environmental concerns.
The market was seemingly over-leveraged, as prices dropped triggered a wave of liquidations that put further pressure on prices. As the market turmoil was unfolding three major payment associations in China – the National Internet Finance Association of China, the China Banking Association, and the Payment and Clearing Association of China – reaffirmed their commitment to upholding regulations from 2017 preventing financial institutions from dealing with cryptoassets.
Over the last seven days, the price of bitcoin plunged from around $45,000 to a $32,000 low before it started recovering. CryptoCompare data shows the flagship cryptocurrency is now trading at $37,600 and is up 11% over the last 24-hour period.
Glassnode’s data shows that the last time exchange outflows for the cryptocurrency surged was in March of last year, when bitcoin’s price plunged by nearly 50% in 24 hours after most major U.S. equity indices entered bear market territory and the World Health Organization declared the COVID-19 breakout a pandemic.
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