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Massive Bitcoin (BTC) Exit From Exchanges May Spell Good Omen, Here's Reason

Tue, 08/15/2023 - 11:15
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Godfrey Benjamin
Bitcoin is leaving exchanges, move that may be upside for price growth
Massive Bitcoin (BTC) Exit From Exchanges May Spell Good Omen, Here's Reason
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Bitcoin (BTC) has been on everyone's radar over the past week as its price is trading in a very close range of $29,245 and $30,030 in the past week. The premier asset has been relatively stagnant since the potential approval of Ark Invest's spot Bitcoin ETF product was delayed by the U.S. SEC last week. In what appears as a subtle response, Bitcoin whales now appear to be moving their funds away from trading platforms, a move that has intensified in the past 24 hours.

Bitcoin's Correlation with U.S. Equities Surges in August

Data from Santiment, as shared by renowned on-chain analyst @Ali_Charts, shows that a total of 11,000 BTC have been withdrawn from crypto trading wallets in the past 24 hours. The sum is worth a total of $330 million, and this move serves as a very good omen for Bitcoin's impending bullish run.

The theories backing this bullish run are that whales are no longer mulling a selloff of BTC, and the withdrawal might be targeted at safe custody on hot wallets. While it is hard to note the exact purpose of on-chain transactions, the withdrawals are helping to limit the total BTC supply on secondary marketplaces, lending a positive undertone to the coin's potential price upshoot.

Growing Bitcoin fundamentals

One crucial fundamental surrounding Bitcoin (BTC) today is its correlation with U.S. equities and investment-grade bonds thus far this month.

Cathie Wood Says SEC Might Say Yes to Multiple Bitcoin ETFs at Same Time

As reported earlier by U.Today, The correlation between U.S. equities and the iShares Core U.S. Aggregate Bond ETF (AGG) stood at 40% and 33%, respectively, for the month of August, according to data that comes from data analytics firm Kaiko.

Ahead of the anticipated approval of a spot Bitcoin ETF, BTC bulls can take solace in this correlation in that it largely legitimizes the coin as a viable investment asset.

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About the author

Godfrey Benjamin is an experienced crypto journalist whose main goal is to educate everyone around him about the prospects of Web 3.0. His love for crypto was birthed when, as a former banker, he discovered the obvious advantages of decentralized money over traditional payments. With his vast experience covering various aspects of Web3, Godfrey's articles has been featured on, Cryptonews and Coingape, among others.