Bitcoin Traders Withdraw $728 Million From Exchanges Despite Decline In Spot Price
Bitcoin’s price action might be causing some concern for bullish proponents, but it remains a focal point for significant money movements on-chain. Over the past 24 hours, Bitcoin has fallen below a major support level of $54,000, giving many short-term investors a reason to worry. However, despite this short-term volatility, a fascinating trend is unfolding beneath the surface.
Interestingly, on-chain data reveals a substantial accumulation trend among long-term investors. Over $728 million worth of BTC has been withdrawn from exchanges in the past week. This trend suggests a strategic move by long-term holders to capitalize on the current market dip.
Massive BTC Withdrawals From Crypto Exchanges
On-chain data suggests that long-term investors are taking advantage of the dip by accumulating more Bitcoin. This trend was highlighted by IntoTheBlock, an analytics platform known for its in-depth tracking of on-chain data for Bitcoin and other cryptocurrencies. According to IntoTheBlock, a cumulative $728 million was withdrawn in BTC from aggregated crypto exchanges over the past week.
Additionally, IntoTheBlock’s data points to a negative net flow of 220.6 million in aggregated exchanges over the past seven days. This means that the volume of Bitcoin flowing out of exchanges has far exceeded the volume flowing in, indicating that more investors are pulling their assets off exchanges than depositing them. Notably, IntoTheBlock credits this withdrawal trend to addresses holding between 100 and 1,000 BTC.
What Does This Mean For Bitcoin?
Withdrawals from exchanges are generally positive for crypto assets, as they reduce the amount of cryptocurrencies readily available for sale. The more Bitcoin that leaves exchanges, the more scarce the supply becomes, potentially driving the price higher.
As of now, Bitcoin is trading at $54,614. However, while this accumulation trend by a few major holders indicates strategic trades, it doesn’t necessarily reflect the broader market sentiment around Bitcoin at the time of writing. Despite the notable withdrawals, Bitcoin has struggled to meet investor expectations, with its price falling below key psychological levels. In fact, Bitcoin ended August with a disappointing negative price performance, declining by 8.6% throughout the month.
Furthermore, this accumulation trend by large holders is being counterbalanced by other concerning developments in the market, particularly the outflows from Spot Bitcoin ETFs based in the US. These ETFs ended the week with $169.97 million worth of outflows on Friday, marking eight consecutive days of outflows.
This decline in inflows into Spot Bitcoin ETFs suggests a growing bearish sentiment among institutional investors, who appear to be withdrawing funds from these products. This, in turn, complicates Bitcoin’s price outlook in the short term. At the time of writing, Bitcoin is trading at $54,614 and remains at risk of breaking further to the downside.
In conclusion, while the on-chain data shows a strong accumulation trend by long-term investors, the broader market sentiment and institutional activities present a mixed outlook for Bitcoin’s price in the near future. Investors should keep an eye on these developments to make informed decisions.
