Bitcoin Experiences Massive Withdrawals from Exchanges, Reaching $540 Million
Date: 2024-02-25 Author: Dima Zakharov Categories: BLOCKCHAIN
Massive withdrawals of Bitcoin (BTC) from exchanges have reached a staggering $540 million, marking the highest level in the past eight months and signaling a significant market shift.
Growing Exodus from Exchanges
According to data from the analytical platform IntoTheBlock, the weekly net outflow from centralized exchanges has peaked recently. Over the last 7 days, investors have withdrawn $540 million worth of BTC from trading platforms, marking the largest outflow since June 2023.
Earlier this week, Julio Moreno, the head of research at CryptoQuant, reported the largest hourly Bitcoin outflow from Coinbase this year. He stated that 18,746 coins, valued at $1 billion, were moved in two transactions within a single block.
Bullish Signal and Whale Accumulation
The massive withdrawal of BTC from centralized exchanges is typically interpreted as a bullish signal, indicating a decrease in available supply. According to Glassnode data, only 2.3 million bitcoins are currently held on trading platforms — the lowest level since 2018.
Meanwhile, crypto whales continue to actively accumulate coins. Santiment data reveals a 7.4% increase in the number of addresses holding balances over 1000 BTC in the last month, amounting to 147 wallets.
CryptoQuant confirms these findings, noting that Bitcoin supply held by large holders has reached its highest level since July 2022, totaling 3.964 million BTC.
Implications for Market Trends
The surge in whale activity reflects their confidence in the future price growth of the leading cryptocurrency. Historically significant accumulations often precede major market movements, suggesting the potential onset of another rally.
According to CryptoQuant, the accumulation of coins by large holders with balances ranging from 1 to 10 thousand bitcoins correlates with price increases, indicating growing demand for BTC for investment purposes.
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