Smart Money Scoops Bitcoin at $59,000 🚀🤑

Bitcoin Whales Withdraw $240 Million Worth of BTC from Bitfinex

Bitcoin has recently surpassed the $59,000 mark as whales continue to make significant withdrawals from the cryptocurrency exchange Bitfinex. Analyst James Van Straten explains that these large outflows from Bitfinex have contributed to Bitcoin’s latest push towards the $60,000 level.

Net Transfer Volume Data for Bitfinex

Analyzing the net transfer volume data for Bitfinex over the past few years, it is evident that the exchange has experienced negative netflow volume recently. This indicates that the outflows from the exchange have exceeded the inflows.

The Significance of Exchange Inflows and Outflows

Investors typically deposit their coins on exchanges when they want to utilize the platform’s services, such as selling their cryptocurrencies. Therefore, large exchange inflows can indicate selling activity.
Holders, on the other hand, tend to withdraw their coins from exchanges when they plan to hold onto them for an extended period. Outflows can also correspond to fresh buying, as some buyers prefer to move their purchases into cold storage immediately.
In general, a net amount of volume flowing out of exchanges is considered a positive sign. In the case of Bitfinex, this trend may be particularly bullish since whales on Bitfinex are often regarded as “smart money.”

Bitcoin Price Surge and Whale Activity on Bitfinex

The recent surge in Bitcoin’s price above $59,000 can be attributed to the significant net outflows from Bitfinex’s whales. These smart money investors have withdrawn over $240 million worth of BTC from the platform during this potential buying spree.

Bitcoin Inflows to Spot Exchanges

While Bitfinex’s data looks promising, the overall trend in the cryptocurrency sector may not be as positive. According to an analyst’s observation in a CryptoQuant Quicktake post, there has been a substantial increase in Bitcoin inflows to all spot exchanges.

Possible Profit-Taking or Continued Support from Whales

The recent influx of Bitcoin into spot exchanges alongside the cryptocurrency’s rally could indicate profit-taking by investors.
However, it is difficult to determine whether this signifies a market top since smart money whales have been supporting Bitcoin throughout this rally.
In December, there was also a significant spike in inflows, but they were directed towards derivative platforms for opening derivative positions. This time, the inflows are going to spot exchanges used for buying and selling cryptocurrencies.