Bitcoin Experiences Near-Record Withdrawals as Investors Pull $2 Billion from Exchanges
Bitcoin is currently witnessing a significant movement in the market, with exchanges experiencing a near-record outflow of over $2 billion. This recent development challenges previous records observed in 2021 and signals a potential shift in the market.
Notable Exodus from Exchanges
The statistics from on-chain analytics firm Glassnode show that on March 1, exchanges saw approximately $2.3 billion in Bitcoin withdrawals. This marks one of the largest withdrawals in over five years and indicates a significant movement of funds away from exchanges.
James Van Straten, in a post on X (formerly known as Twitter), expressed his surprise at the magnitude of the exodus, stating, “I don’t think I’ve quite seen anything like this before.”
Lowest Level of Bitcoin Assets on Exchanges Since 2018
Glassnode’s data also reveals that as of March 2, the total Bitcoin held on major exchanges has fallen to 2,286,347 BTC, valued at approximately $142.5 billion. This marks the lowest level of Bitcoin assets on exchanges since March 2018.
Van Straten further elaborated that Binance saw about $400 million in outflows, while Coinbase accounted for the rest. He noted that Binance’s outflows are particularly interesting because they are unrelated to the ETF (Exchange-Traded Fund).
Bitcoin Price Reaches $64,000 Briefly
CoinMarketCap data shows that Bitcoin is currently trading at $63,632, up 2.54% from 24 hours ago. The price of Bitcoin briefly touched the $64,000 level before retracing back to around $62,000.
Furthermore, the consolidation above $62,000 has resulted in 99% of Bitcoin addresses being profitable. Bitcoin analyst PlanB suggests that this indicates the crypto is entering an explosive bullish market driven by the fear of missing out (FOMO).
Hot Take: Bitcoin Withdrawals Near Record as Investors Pull $2 Billion from Exchanges
The recent near-record outflow of over $2 billion from exchanges highlights a significant movement in the Bitcoin market. This development challenges previous records and suggests a potential shift in the market dynamics.
Investors’ decision to withdraw such a substantial amount of Bitcoin from exchanges indicates their confidence in holding the cryptocurrency outside of centralized platforms. It also reflects a growing trend of investors seeking to secure their assets in self-custody wallets.
Furthermore, the decline in Bitcoin assets on exchanges to its lowest level since 2018 suggests that investors are increasingly opting for long-term storage solutions rather than actively trading their holdings. This shift may indicate a shift towards a more mature and stable Bitcoin market.
As the price of Bitcoin briefly reached $64,000 before retracing, it further reinforces the positive sentiment among investors. The consolidation above $62,000 has made almost all addresses profitable, indicating strong investor confidence and potential for further price appreciation.
In conclusion, the significant outflow of funds from exchanges and the positive price movement of Bitcoin suggest a bullish sentiment among investors. As more individuals and institutions recognize the value and potential of cryptocurrencies, we can expect further developments in the market.
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