Significant Bitcoin outflows were observed this week, with major exchanges experiencing a plunge in Bitcoin balances to a year-to-date low of 2.3 million, indicating increased investor confidence despite market turbulence. This move has been particularly noticeable on platforms such as Bittrex and Binance. Bittrex recorded its largest outflow since May 2023, with about $40 million exiting the platform, while Binance saw one of its largest outflows this year, nearing $150 million.
On Tuesday, Bitcoin surpassed the $29,000 threshold, leading to approximately $200 million in Bitcoin being transferred from these platforms to private wallets. The current trading price stands at $28,788 after a 7% surge in the past week, remaining above the psychological support level of $28,000.
According to CryptoQuant data, there was a withdrawal of 33,000 Bitcoins ($924 million) from exchange wallets within five days. Bitstamp has seen its biggest annual outflow of 5,000 Bitcoins, marking its lowest holdings since 2013. On the other hand, OKX experienced its largest three-year inflow of 8,000 Bitcoins, reaching about 143,000 Bitcoins in total.
Analysts interpret these movements as an indication of long-term holders' bullish outlook on Bitcoin. The trend reminds them of the bull run in November 2020. The Securities and Exchange Commission’s (SEC) non-opposition to Grayscale Investments’ bitcoin ETF reversal also signals potential approvals for multiple ETFs involving Bitcoin. This could lead to a possible market injection of $1 trillion and potentially drive Bitcoin's price up to $73,000.
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