Record $1B Bitcoin Outflow in a Single Day: Largest in 12 Months

Jonathan Stoker Dec 29, 2023, 21:20pm 157 views

Record $1B Bitcoin Outflow in a Single Day: Largest in 12 Months

Bitcoin's Onchain Activity Indicates Bullish Scenario Continues

Recent developments in onchain activity are solidifying the optimistic outlook for bitcoin. Data from last Wednesday reveals a significant movement of approximately 28,000 BTC, valued at $1.19 billion, away from centralized exchanges. This marks the highest single-day outflow in BTC terms since December 14, 2022, as noted by blockchain analytics firm Glassnode.

Net Outflows from Exchanges Interpreted as Positive Indicator

Increased net outflows from exchanges are frequently seen as indicative of investors' intent to assume direct possession of coins, or as an expression of their inclination for a more long-term holding strategy.

Coinbase: A Key Player

Nasdaq-listed CoinbaseCoinbase, which is the trustee for nine out of the twelve proposed spot BTC exchange-traded funds (ETFs) scheduled for launch in the US, witnessed over 18,000 BTC outflow on the same Wednesday, according to analytics firm CryptoQuant. These impressive figures have sparked speculation among the crypto community about possible institutional activity in anticipation of an ETF debut due in early January.

Coin Balance on Exchanges at Its Lowest Since 2018

The total BTC balance held in wallets associated with centralized exchanges has decreased to 2,327,025 BTC, marking the smallest amount since April 2018. This decrease is significant because a lower number of coins on an exchange typically signifies dwindling supply-side pressures, which in turn could catalyze price appreciation.

Current Bitcoin Trading Figures

As of now, BitcoinBitcoin$42,260 -0.64% trades at $42,700, reflecting a 158% increase on a year-to-date basis, according to CoinDesk data.

Edited by Jonathan Stoker

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