According to data monitored by blockchain analysis company Glassnode, withdrawals of Bitcoin (BTC) from cryptocurrency exchanges continue. The data shows that the highest BTC outflow in the last year was recorded on December 27th.
The Largest Bitcoin Outflow Since December 14, 2022
Data provided by Glassnode indicates that since December 14, 2022, there has been the largest single-day outflow in BTC terms, with over 28,000 BTC valued at $1.19 billion leaving centralized cryptocurrency exchanges. Net outflows from cryptocurrency exchanges are generally very important as they often indicate investors’ intentions to store their BTC in their own wallets or prefer a long-term holding strategy.
According to crypto analysis company CryptoQuant, only 18,000 BTC left Coinbase, which is waiting to be listed on the Nasdaq exchange along with 9 out of 12 spot Bitcoin exchange-traded funds (ETFs) that have been added for approval in the US.
This activity specific to Coinbase has led to various speculations that institutional investors are beginning to take action ahead of the highly anticipated spot ETF launch in the crypto world on leading social media platform X at the beginning of January.
What Do BTC Withdrawals from Exchanges Mean?
The amount of BTC in wallet addresses linked to centralized cryptocurrency exchanges is currently at its lowest level since April 2018, at 2.32 million units. Having less BTC held on cryptocurrency exchanges suggests that the supply-side pressure is weakening and there is potential for the price to rise.
Current data shows Bitcoin trading at $42,667, down 0.98% in the last 24 hours. While the data indicates that the price of the crypto king has fallen by 2.22% in the last 7 days, it has risen by 11.66% in the last 30 days. More notably, the increase recorded since the beginning of the year has exceeded 160%.
