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Traders Move $800 Million Worth of BTC Away from Exchanges: Details

Sun, 02/06/2022 - 15:08
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Arman Shirinyan
Despite major corrections on the market, investors are not willing to sell their holdings
Traders Move $800 Million Worth of BTC Away from Exchanges: Details
Cover image via stock.adobe.com

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A total of $800 million worth of BTC was moved from exchanges amid the sudden price increase of the first cryptocurrency, which currently trades far above $40,000.

The sudden price increase was quite a surprise for a market filled with on-chain and fundamental data that suggested the further downfall of digital gold as the market failed to recover numerous times.

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But while the majority bet on the end of the bull market and a further drop below $30,000, centralized exchanges were constantly facing losses of their reserves, which indicated that traders are not actively selling as the majority thought.

The first positive sign for the industry was the "decoupling" of the majority of cryptocurrencies on exchanges and the stock market that plunged while Bitcoin and other digital assets were either trading in the neutral or positive zone.

How do exchange outflows affect the market?

Usually, negative exchange flow is considered a good sign for the market as selling pressure during periods of large outflows is considerably smaller compared to periods when traders and investors are actively moving their funds to centralized or decentralized exchanges.

Since current exchange flows in BTC remain negative, we can conclude that the majority of the market is not looking forward to selling its holdings despite the negative performance of Bitcoin in the last few months.

At press time, Bitcoin trades at $41,725 with a local high of $41,983. The cryptocurrency shows another positive trading day at 0.72%. Previously, Bitcoin pumped by 12% in one day, jumping from $37,100 to $41,700 in a matter of hours.

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About the author

Arman Shirinyan is a trader, crypto enthusiast and SMM expert with more than four years of experience.

Arman strongly believes that cryptocurrencies and the blockchain will be of constant use in the future. Currently, he focuses on news, articles with deep analysis of crypto projects and technical analysis of cryptocurrency trading pairs.