111,000 BTC Move Out Of Exchange Wallets In A Month – Impact On Bitcoin Price?
07 Abril 2024 - 4:50AM
NEWSBTC
The Bitcoin price has somewhat slowed down since reaching the
unprecedented high of $73,000, moving mostly sideways since
mid-March. However, with the halving event less than a fortnight
away, all eyes will be on the premier cryptocurrency and all that
pertains to it over the next couple of weeks. According to a recent
on-chain observation, the BTC supply on exchanges has been on a
steady decline over the past few months. This trend has sparked
discussions on what this could mean for the Bitcoin price, both in
the short and long term. $7.55 Billion Transferred Out Of Exchange
Wallets In The Past Month Prominent crypto pundit Ali Martinez took
to the X platform to share that a significant amount of Bitcoin has
been moved out of crypto exchanges over the past month. The
relevant metric here is Glassnode’s Balance on Exchanges, which
tracks the total amount of a cryptocurrency (Bitcoin, in this case)
held across all exchange addresses. Related Reading: Bitcoin
Short-Term Holders Go On 1.2 Million BTC Buying Spree, Is Retail
Finally Here? A decrease in the value of this indicator implies
that investors are making more withdrawals than deposits of Bitcoin
into centralized exchanges. The metric’s increase, on the other
hand, indicates that more BTC is flowing into these exchanges than
leaving. Chart showing Bitcoin balance on all exchanges | Source:
Ali_charts/X According to Martinez, about 111,000 BTC (worth
approximately $7.55 billion) have been transferred out of known
crypto exchange wallets in the past month. Typically, an exodus of
funds (of this magnitude) suggests a significant shift in the
sentiment of Bitcoin investors. While the exact rationale behind
such a massive movement of Bitcoin remains unclear, the flow of
funds from trading platforms suggests a growth in investor
confidence. This implies that BTC owners are more interested in
holding their assets in the long term rather than selling for
short-term gains. Furthermore, this continuous downward trend in
BTC’s balance on exchanges could set the stage for a bullish rally
for the Bitcoin price. A sustained drop in the BTC’s supply on
centralized exchanges could result in a supply crunch – a scenario
where the supply of a particular asset is lower than its demand,
leading to a surge in its value. Another potential bullish
catalyst for the Bitcoin price is the upcoming halving event, which
is expected to occur on April 18, 2024. With the miners’ rewards
slashed in half and the production of Bitcoin slowed, this event is
expected to impact the value of BTC positively. Bitcoin Price At A
Glance As of this writing, the Bitcoin price stands at around
$69,537, reflecting a 2.7% increase in the last 24 hours. Related
Reading: Breakout Of The Year? Crypto Analyst Predicts Where NEAR
Is Headed Next Bitcoin price on the verge of $70,000 on the daily
timeframe | Source: BTCUSDT chart on TradingView Featured image
from iStock, chart from TradingView
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