The continuous decline in Bitcoin trading balance indicates that investors' confidence in the market is constantly increasingAfter a week of turmoil in the cryptocurrency market, Bitcoin (BTC) showed significant resilience on Wednesday, maintaining stability around the $28300 mark. However, behind this stability lies a whirlwind of activity, especially the massive outflow of Bitcoin from exchange wallets
The continuous decline in Bitcoin trading balance indicates that investors' confidence in the market is constantly increasing
After a week of turmoil in the cryptocurrency market, Bitcoin (BTC) showed significant resilience on Wednesday, maintaining stability around the $28300 mark. However, behind this stability lies a whirlwind of activity, especially the massive outflow of Bitcoin from exchange wallets.
Bitcoin transaction outflow surged
Cryptocurrency analyst Ali Martinez emphasized this interesting development in a tweet on Wednesday evening,
In the past five days, approximately 33000 BTC, equivalent to approximately $924 million, has been extracted from well-known cryptocurrency transaction wallets. "Alibaba's insights come from the on chain analysis company Cryptoquant.
Interestingly, this phenomenon has always been a recurring theme, inspiring the enthusiasm of the encryption community. According to Glassnode's data, Bitcoin worth up to $250 million flowed out of the exchange on October 16th, followed by another $200 million on October 17th.
It is worth noting that a significant portion of these significant capital outflows are directly related to the currency security. In addition, between October 14th and 17th, approximately 16000 Bitcoins were removed from the exchange wallet, resulting in a significant decrease in the total amount of Bitcoins held on these platforms. This trend has put the total holdings of Bitcoin on the exchange dangerously close to the low point so far this year, approaching only 2.3 million Bitcoins.
Is the Bitcoin Bull Market Coming Soon?
That is to say, this development is in stark contrast to what happened more than a month ago. Before Grayscale achieved a landmark legal victory over the SEC, nearly 30000 BTCs worth slightly over $820 million entered the centralized exchange, indicating that investors are actively preparing to respond to any unexpected actions.
It is important to understand that a significant decrease in the supply of Bitcoin available to exchanges is usually a precursor to increased demand, ultimately leading to a surge in Bitcoin market prices. When users extract tokens from an exchange, they are likely less willing to engage in sales activities, and vice versa.
As of the time of publication, the trading price of Bitcoin was $23308, a decrease of 0.745% in the past 24 hours, but an increase of over 6% in the past week.
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