In a recent development in the Bitcoin market, on-chain data has revealed that a massive 40,000 BTC has exited crypto exchanges in the last 48 hours. This significant outflow comes at a time when Bitcoin’s price has been relatively stagnant, indicating that major market players may be seizing the current price levels as a buying opportunity.
The timing of this substantial outflow aligns with a period of lackluster price activity for Bitcoin. Despite reaching highs of $61,194 in yesterday’s trading session, BTC was trading at $59,478 at the time of writing, down 1.11% in the last 24 hours. This movement suggests that investors are viewing the recent dip in Bitcoin prices as an opportunity to accumulate more of the digital asset.
Crypto analyst Ali pointed out that on-chain data from Santiment indicates a 40,000 BTC decrease in the exchange’s supply over the last 48 hours, equivalent to approximately $2.4 billion. This move coincides with a noticeable surge in exchange outflows, signaling a potential increase in buying interest or a shift to cold storage. The latter is often perceived as a bullish sign, as it suggests that investors are holding onto their assets with a long-term outlook rather than looking to sell in the short term.
Santiment also observed an uptick in accumulation for wallets holding between 10-10,000 BTC over the past month. This group of Bitcoin holders collectively acquired 133,300 more coins during this period, while smaller traders continuously decreased their holdings. The trend of moving Bitcoin to cold wallets indicates a growing interest among investors to hold onto the digital asset for an extended period, anticipating future price appreciation.
Throughout the year, there has been a noticeable decrease in the amount of Bitcoin held on exchanges, as more investors opt for self-custody. The outflow of Bitcoin to cold wallets not only reflects a shift towards long-term holding but also reduces the selling pressure on exchanges. With Bitcoin reserves on exchanges hitting yearly lows, there is a potential for a bullish trend in the market if demand continues to rise alongside the decreasing supply on exchanges.