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On-chain data has brought to light an intriguing development on the Bitcoin market. In the last 48 hours, a whopping 40,000 BTC has exited crypto exchanges. The timing of this significant outflow aligns with a period of Bitcoin's lackluster price activity, indicating that major market players might be viewing the current price levels as a buying opportunity.
At the time of writing, BTC was 1.11% in the last 24 hours to $59,478, after reaching highs of $61,194 in yesterday's trading session. Bitcoin remains down 2.24% weekly.
According to crypto analyst Ali, it appears that some major players have taken advantage of the recent dip in Bitcoin prices. Ali noted that on-chain data from Santiment reveals a 40,000 BTC drop in the exchange's supply over the past 48 hours, equivalent to about $2.4 billion.
This move aligns with a notable surge in exchange outflows, one which might suggest buying or a move to cold storage. The latter is often seen as bullish, as it suggests that investors are holding onto their assets rather than looking to sell them in the short term.
Tomiwabold OlajideAs reported, Santiment spotted an increase in accumulation for wallets with 10-10,000 BTC since the past month. This class of Bitcoin holders has collectively accumulated 133,300 more coins, according to Santiment, while smaller traders continue to impatiently drop their holdings there.
Bitcoin reserves on exchanges drop
Since the year's start, there has been a noticeable decline in Bitcoin reserves on exchanges as investors favor self-custody.
The outflow of Bitcoin to cold wallets generally indicates that investors are more interested in holding the crypto asset for a longer period, hoping for future price appreciation.
As indicated by CryptoQuant, Bitcoin reserves on exchanges have fallen to yearly lows, which has implications for the Bitcoin market.
With fewer Bitcoin available on exchanges, the selling pressure decreases — a trend that might potentially favor a bull market if demand also continues to grow.
Alex Dovbnya
Dan Burgin