$2.5 Billion In Bitcoin Flows Out Of Centralized Exchanges – Time To Buy?
June 01 2024 - 8:00AM
NEWSBTC
Investor confidence appears to be on the rise in the crypto market
lately, and Bitcoin has been a major beneficiary of this positive
trend. Consequently, there has been a continuous accumulation of
BTC amongst large-scale investors despite its somewhat frustrating
price action. The premier cryptocurrency’s price may have ended May
beneath the psychological $70,000 mark, despite having touched the
level a couple of times in the last two weeks of the month. The
latest on-chain data suggests that the faith in Bitcoin has only
continued to grow strong. Is BTC Primed For A Price Rally?
Prominent crypto analyst Ali Martinez shared via a post on the X
platform that substantial amounts of Bitcoin have been making their
way out of centralized exchanges. This on-chain observation is
based on the CryptoQuant Exchange Reserve metric, which tracks the
amount of a particular cryptocurrency in the wallets of all
centralized exchanges. Related Reading: Only 8 Altcoins Have Broken
ATH Against Bitcoin Since FTX’s Collapse – Analyst Weighs In An
increase in the metric’s value indicates that investors are making
more deposits than withdrawals of a crypto asset (Bitcoin, in this
scenario) into centralized exchanges. Meanwhile, when the metric
declines in value, it implies that more coins are moving out than
into the trading platforms. According to Martinez’s post, more than
37,000 BTC (worth roughly $2.53 billion) have been transferred out
of crypto exchanges in the past three days. This significant exodus
of funds indicates a change in sentiment and the long-term holding
strategy of Bitcoin investors. While it is difficult to tell
the exact rationale behind the massive outflow from exchanges, the
movement of funds from trading platforms suggests an increase in
investor confidence. This indicates that many investors might be
convinced by the future promise of Bitcoin, thereby opting to store
their assets in self-custodial wallets in the long term. What’s
more, the downward spiral of Bitcoin’s supply on centralized
exchanges could trigger a bullish rally for the premier
cryptocurrency’s price. The sustained decline in BTC’s balance on
exchanges could result in a supply crunch. For context, the supply
crunch refers to a scenario or period during which the supply of a
particular asset is lower than the demand for it, resulting in a
surge in the asset’s value. Bitcoin Price At A Glance As of
this writing, the price of Bitcoin stands around $67,489,
reflecting a 1.5% decline in the past 24 hours. This sluggish
performance in the past day underscores the premier
cryptocurrency’s struggles in the past week. According to
CoinGecko’s data, the BTC price is down by nearly 2% in the last
seven days. Related Reading: Ethereum Bloodbath: Over $55 Million
In Longs Liquidated As Price Plummets Featured image from iStock,
chart from TradingView
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