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Kucoin, Bitfinex, BitMEX, OKEx. It’s easy to forget a time when the quick succession of negative news concerning large exchanges would have a material effect on the price of Bitcoin.

Today, these stories have their 5 minutes of fame and then fade away. Prices react at the moment the headline hits, as traders hit bids with a ‘sell now, read later’ mentality. What we don’t know for sure is this: have the confidence-sapping headlines been a contributor to the continued decline in exchange balances?

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Is a contributing factor the upcoming implementation of the travel rule, and the need to report KYC information upon withdrawals? Is the growth of Grayscale draining balances from exchanges as BTC is fed into the Bitcoin giant to capture the ‘Grayscale premium’?

…Or is there a deeper mistrust of exchanges that do not operate with a recognized custodian holding Bitcoin balances?

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The data is crystal clear. Bitcoin is leaving exchanges, week after week, except of course, from OKEx, (well, for the last week anyway).

Logic dictates that the less Bitcoin there is to sell into the bid, the less risk there is to downside price shocks. Add to this the rhetoric that, as a company CFO, you should be placing 1% of your assets into BTC, and we are left with a bullish picture.

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…A picture which is also backed up by the images above and below. The hashrate, which can be thought of as the beating heart of Bitcoin, is continuing its steadily climb, printing new highs week after week. This, in turn, is driving up mining difficulty, and it never has been so hard to get your hands on a freshly mined Bitcoin.

It all feels rather bullish.

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