- Bitcoin (BTC), after a tumultuous week in the cryptocurrency market, maintained a stable position around $28,300 on Wednesday, showing remarkable resilience.
- According to Glassnode data, following the withdrawal of $250 million worth of Bitcoin from exchanges on October 16, an additional $200 million left on October 17.
- Notably, a significant portion of these substantial withdrawals was directly linked to Binance. Furthermore, over the course of several days from October 14 to October 17, approximately 16,000 Bitcoins were removed from exchange wallets.
As per the latest data, the amount of Bitcoin withdrawn from centralized exchanges has reached massive proportions. Why is this indicator so crucial for the BTC price?
More Than 30,000 Bitcoins Withdrawn from Exchanges
Following a complex week in the cryptocurrency market, Bitcoin (BTC) maintained a stable position around $28,300 on Wednesday. However, beneath this stability, a series of activities, especially the significant outflow of Bitcoin from exchanges, was occurring.
Crypto analyst Ali Martinez pointed out this intriguing development, saying, “In the last five days, around 33,000 BTC – roughly $924 million – were withdrawn from known cryptocurrency exchange wallets” on Wednesday evening. Ali’s insights were derived from on-chain analytics firm CryptoQuant.
Interestingly, this indicator has become a recurring theme that has excited the crypto community. According to Glassnode data, after the withdrawal of $250 million worth of Bitcoin on October 16, an additional $200 million left exchanges on October 17.
Specifically, a large portion of these significant outflows was directly associated with Binance. Additionally, over the course of several days from October 14 to October 17, approximately 16,000 Bitcoins were withdrawn from exchange wallets, leading to a substantial decrease in the total Bitcoin held on these platforms. This trend has brought the total Bitcoin assets on exchanges to nearly 2.3 million Bitcoins, a potentially precarious drop since the beginning of the year.
Is a Bull Run on the Horizon for BTC?
However, this development contrasts sharply with what happened a little over a month ago. Prior to Grayscale’s groundbreaking legal victory against the SEC, which involved the transfer of just over 30,000 BTC valued at slightly over $820 million back to centralized exchanges, Bitcoin was on the move in the opposite direction. This indicated that investors were proactively positioning themselves for unexpected movements.
What’s crucial is that a significant reduction in the supply of Bitcoin on exchanges often serves as a herald of increasing demand, ultimately resulting in an increase in Bitcoin’s market price. Users tend to be either less inclined to sell or more inclined to buy when they withdraw their funds from exchanges, providing a clear likelihood of the former.
