Monthly Rise of $1.16B in Bitcoin Stored in Exchange Wallets

• Accelerated BTC Influx in Centralized Exchanges since May
• Interpretation of Inflows and Outflows
• BTC Exchange Net Position Change vs BTC Price Since 2020
• Concerns Over Wallet Safety on Exchanges
• Current Bitcoin Market Status

Accelerated BTC Influx in Centralized Exchanges since May

The number of Bitcoin$42,260 -0.64% (BTC) stored in wallets linked to centralized cryptocurrency exchanges has surged at the quickest rate since May, suggesting a possible pause in the bull market. According to blockchain analytics firm Glassnode, the Bitcoin exchange net position change metric, which monitors the quantity of coins held by exchange wallets on a specific date relative to the same date a month ago, increased to 31,382.43 BTC, reaching approximately 1.16 billion USD on Sunday. This strikes the highest record since May 11, 2023, taking the total balance on exchanges to 2.35 million BTC.

Interpretation of Inflows and Outflows

Generally, an influx into exchange wallets indicates the investors' plan to liquidate their assets, implying potential selling pressure, or to use coins as a margin in futures and options markets. On the other hand, an outflow signifies accumulation.

BTC Exchange Net Position Change vs BTC Price Since 2020

Since November 1, the Bitcoin exchange net position change has consistently been on the rise. Historically, such periods have been synonymous with bull market pauses or price pullbacks. However, the latest inflow could also translate to a resurgence of investor trust in centralized exchanges.

Concerns Over Wallet Safety on Exchanges

Last year, concerns surrounding the safety of coins held in exchange wallets emerged following the collapse of Sam Bankman Fried's FTX$3.28 -5.38% Exchange, which was the third-largest at the time. This event led investors to transfer their coins from exchanges to their possession.

Current Bitcoin Market Status

As per the data from CoinDesk Indices, Bitcoin was traded at 37,170 USD at press time, after reaching a high of 31,517 USD late Sunday. This rise is thought to be a result of the BTC-supportive victory of Javier Milei in Argentina's Presidential elections.

The dominant cryptocurrency in terms of market value has seen a 7.5% increase this month, further extending October's 28% rise, as shown by CoinDesk data.

Edited by Jonathan Stoker