In a very bullish sign for itcoin">Bitcoin, approximately 33,000 BTC valued at around $924 million have been withdrawn from major cryptocurrency exchange wallets over the past 5 days. This massive outflow of itcoin">Bitcoin from exchanges was highlighted by crypto analyst Ali Martinez, who cited data from on-chain analytics provider Cryptoquant.
This continues a recent trend of investors moving significant amounts of itcoin">Bitcoin off of exchanges. For example, on October 16th, a staggering $250 million in itcoin">Bitcoin left exchanges in a single day, followed by another $200 million the very next day, with a substantial portion coming from Binance. From October 14th to October 17th, about 16,000 BTC in total were removed from exchange wallets.
These sizable withdrawals have brought the total itcoin">Bitcoin reserves held on exchanges precariously close to 2022 low, down to around only 2.3 million BTC. This is a dramatic reversal from just over a month ago when almost 30,000 BTC worth over $820 million was transferred into exchanges ahead of potential market volatility related to Grayscale’s legal proceedings against the SEC.
Experts suggest that decreases in the itcoin">Bitcoin supply accessible on exchanges tend to precede spikes in demand and price, as investors withdrawing coins are less likely to sell in the near term. The recent mass exodus from exchanges therefore hints at growing confidence in itcoin">Bitcoin’s trajectory, as holders increasingly transfer into secure storage rather than leaving coins on exchanges ready to trade.
With optimism spreading, many analysts believe this drop in exchange liquidity could be a precursor to a significant itcoin">Bitcoin bull run. itcoin">Bitcoin is currently trading around $23,300, down slightly over 24 hours but up over 6% week-over-week. The stage appears set for major price growth if the prevailing trends continue.
