Bitcoin outflows from centralized crypto exchanges in January are affecting Bitcoin price predictions downward. According to the latest data obtained by blockchain data analysis firm Glassnode, assets continue to leave exchanges despite a 20% drop in the BTC/USD pair. According to on-chain data, the appetite of Bitcoin investors has not been damaged as a result of the current Bitcoin price pressures.
Bitcoin Activity on Centralized Exchanges
According to Glassnode analysts, the outflows experienced on the side of the US-based crypto exchange Coinbase have consistently been over 10,000 Bitcoins per day since the launch of the first US spot Bitcoin exchange-traded funds.
Although balance data shows the impact of related entries, a notable trend emerges in the second half of the month. Accordingly, Bitcoin outflows and inflows are becoming more balanced, indicating a decrease in volatility seen after the ETF launch on January 11.
The Bitcoin balance on exchanges increased throughout January but changed direction on January 23. Since that date, the trading platforms monitored by Glassnode have become lighter by 7,400 Bitcoins, valued at $321 million.
Grayscale Sales Continue to Decline
During this period, ETF flows also show a trend in favor of Bitcoin bulls. Grayscale Bitcoin Trust (GBTC) used to send approximately $700 million worth of Bitcoin daily to Coinbase, but recent daily outflows have been less than $200 million. In terms of Bitcoin, there was an outflow of 24,000 Bitcoins on January 25, while just over 6,000 Bitcoins were seen on January 29.
Using data from the blockchain data analysis platform CoinGlass, financial commentator Tedtalksmacro, who analyzed GBTC flows, predicted a shift from net outflows to net inflows for spot ETF products. In his latest YouTube video, the well-known figure asked investors the following question:
“When we start to see green on this chart, barring an unknown event we are currently unaware of, what narrative do you have to sell?”
Tedtalksmacro considered the recent downtrend accompanying GBTC outflows to be exaggerated. Regarding globally traded ETF products, the famous analyst shared the following:
“There are $26 billion worth of on-chain assets in these Bitcoin ETF products, and as people become more comfortable with this asset class, this number will continue to rise.”
