Record Bitcoin Outflow from Centralized Exchanges (CEX) Registered

According to data tracked by analytical firm Glassnode, December 28, 2023, witnessed an unprecedented Bitcoin outflow from centralized trading platforms (CEX) for the year. Approximately 28,000 BTC, equivalent to $1.19 billion, left exchange wallets, representing the largest single-day movement since December 14, 2022.

Typically, a net outflow of funds from CEX is seen as investors' intention to halt trading activities and transition to self-custody, indicating a long-term strategy for holding digital assets and confidence in price appreciation. CryptoQuant's data reveals that over 18,000 BTC were withdrawn from Coinbase alone, sparking discussions among experts and the crypto community about institutional activity in anticipation of the expected ETF launch in early January 2024. Consequently, the overall BTC balance on wallets tied to centralized exchanges has plummeted to 2,327,025 BTC, the lowest level since April 2018.

A decrease in the number of coins on trading platforms suggests diminished selling pressure and potential for price growth. As of December 29, 2023, Bitcoin (BTC) is trading at $42,520, a 0.9% decline compared to the previous day. The total market capitalization stands at $832.62 billion, with daily trading volumes at $22.85 billion, marking a 157% increase over the past year.

Centralized cryptocurrency exchanges (CEX) are online platforms where users can buy, sell, and trade various cryptocurrencies. They are the most common type of cryptocurrency exchanges, offering a wide range of trading pairs and instruments.

While CEX platforms offer convenience, liquidity, and a diverse selection of altcoins, they also come with certain limitations, including potential security risks and the need to trust the exchange operator. Each investor should assess their needs and goals independently before selecting a platform for their operations.