According to Bitfinex's latest weekly report, the amount of Bitcoin held on centralized exchanges has dropped to levels not seen since early 2018. The report found that Bitcoin balances on exchanges have decreased by 32% from their peak in March 2020 to 2.1 million BTC. Bitfinex attributes this decline to the growing usage of decentralized exchanges and investors moving their coins to cold storage.
Despite the lack of clear direction in the market, Bitfinex believes that the outflows from short-Bitcoin funds could cause the asset to break out towards the upside. Additionally, Coinshares' latest analysis shows that crypto-backed investment funds have seen a net inflow of $137 million in the past week, with 99% of the assets directed towards Bitcoin-backed entities.
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