Centralized crypto exchanges experienced a significant outflow of bitcoins, the largest in over a year. According to data from blockchain intelligence platform Glassnode, more than 28,000 BTC worth around $1.19 billion left centralized trading platforms on December 27.
The Largest Single-Day Outflow in a Year
This level of outflow has not been seen since December 14, 2022. Coinbase, the largest American crypto exchange, witnessed BTC outflows of 18,000, worth approximately $774 million. Coinbase has seen the highest outflows compared to other exchanges, with over 31,400 BTC leaving the platform in the last 30 days. Binance, the world’s largest exchange, recorded over 5,858 BTC in outflows in a 24-hour period.
These high outflows suggest that bitcoin holders are moving towards self-custody solutions and adopting long-term holding strategies. Bitcoin balances on centralized exchange wallets have been decreasing and are currently at their lowest level since April 2018.
Potential Approval of Bitcoin ETFs
The decrease in bitcoin supply on exchanges indicates a lack of selling pressure and a positive outlook for price movement. This can be attributed to the potential approval of several spot Bitcoin exchange-traded funds (ETFs) in January. Analysts predict that this could trigger a major rally in BTC’s price as money flows into the network.
Growth and Interest in Bitcoin
As the year comes to an end, analysts consider 2023 to be a great year for bitcoin. The network has gained 51 million addresses in the past 30 days, with an average balance of $15,913 and an average holding time of four years and three months.
Around 31% of the circulating BTC supply has remained inactive for five years. The network has also seen an average of 16,435 daily large transactions and 550 daily transactions in the past month.
Crypto investment products have received substantial inflows, totaling $103 million in the week ending December 22. Bitcoin funds accounted for $87.6 million of the inflows, representing 85% of the total. This sustained interest from investors is evident in the 12 weekly inflows over the past 13 weeks.
Hot Take: Bitcoin Outflows Signal Shift Towards Self-Custody and ETF Anticipation
The recent significant outflow of bitcoins from centralized exchanges indicates a growing trend among bitcoin holders to adopt self-custody solutions and embrace long-term holding strategies. This shift away from exchanges may be driven by the potential approval of spot Bitcoin exchange-traded funds (ETFs) in January, which is expected to generate a major price rally. With decreasing bitcoin supply on exchanges and sustained interest from investors, it appears that bitcoin is poised for growth in 2023. As we enter the new year, all eyes are on bitcoin and its potential for further adoption and price appreciation.
By
By
By