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Bitcoin: 111,000 BTC Removed From Crypto Exchanges, What's Behind It

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Sun, 7/04/2024 - 15:18
Bitcoin: 111,000 BTC Removed From Crypto Exchanges, What's Behind It
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According to crypto analyst Ali, nearly 111,000 Bitcoin (BTC), valued at around $7.55 billion, were moved out of known crypto exchange wallets in the last month.

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This trend highlights a gradual reduction in BTC supply on exchanges in recent months, implying an exodus from cryptocurrency exchanges.

One probable explanation for the Bitcoin exodus is that an increasing number of investors prefer to retain their Bitcoin in private wallets rather than on exchanges.

Furthermore, institutional Bitcoin adoption has recently accelerated. These institutional investors might wish to secure their holdings in private wallets or cold storage for long-term purposes.

The withdrawal of such a large amount of Bitcoin from exchanges might potentially cause a supply crunch, in which demand for BTC surpasses available supply. This scenario might pave the way for a bullish rally.

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In an April 4 tweet, Ali reported 21,400 BTC, worth around $1.40 billion, being moved to accumulation addresses that have never spent funds in a single day.

220,000 BTC added to whale balances

On-chain analytics firm IntoTheBlock reports that Bitcoin ETFs have amassed more than 4% of the BTC supply in less than three months.

The amount of Bitcoin held by addresses with 1,000 BTC or more, called "whales," has surged dramatically since the ETFs' inception, with the aggregate balance of whale addresses hitting its highest point since June 2022.

This year, the balance of whales has increased by 220,000 BTC, totaling $14.2 billion, with 210,000 of these BTC coming from net inflows into ETFs, which have powered the vast bulk of the whales' accumulations. This has pushed Bitcoin to fresh all-time highs, contributing to increased demand for crypto assets.

BTC was up 2.23% in the previous 24 hours to $69,286 at the time of writing.

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