More than $750 million in Bitcoin has left crypto exchanges today
Investors moved more than 38,000 units of bitcoin, worth north of $750 million, off exchanges today, according to figures calculated this afternoon.
These marketplaces had experienced net outflows of approximately 38,800 units of bitcoin today just before 1:00 PM EST, according to CryptoQuant data.
The total market capitalization of this cryptocurrency was determined using CoinDesk data obtained from the aforementioned data source near the same time.
This daily outflow, illustrated in the image below, was the largest since June, the month bitcoin fell to a 2022 low, according to CoinDesk.
[Ed note: Investing in cryptocoins or tokens is highly speculative and the market is largely unregulated. Anyone considering it should be prepared to lose their entire investment.]
Analysts largely described the move as a signal that investors have started buying the world’s most valuable digital currency to bolster their holdings.
“BTC is clearly being accumulated by ‘whales’ and institutions,” said Tim Enneking, CEO of Digital Capital Management.
“The number of wallets with 100, 1000 or more BTC has been increasing for the better part of a year,” he noted. “It’s a trend.”
“BTC flows on and off exchanges seem to be a good indicator of price movements, although in my experience it’s not very useful as the moves to exchanges usually seem to be ‘just in case’ rather than a firm intention to sell.” Enneking noted.
“However, movements off are a slightly better indicator of price direction – and a large departure like we’re seeing at the moment is actually quite a bullish indicator,” he concluded.
Andrew Rossow, internet lawyer and Web3 consultant, offered a similar view on the matter.
“I agree with the assessment” that market participants are accumulating bitcoin, he stated.
“I think investors are making what they feel are strategically smart fiscal decisions and not leaving holdings to chance right now.”
Armando Aguilar, an independent cryptocurrency analyst, also weighed in.
“We have seen an increase in BTC outflows from exchanges indicating that investors are accumulating,” he said.
“BTC outflows from exchanges are usually seen as a bullish indicator as traders move from selling to holding and reducing available ‘ready to sell’ offers on exchanges,” Aguilar stressed.
“In addition, BTC-based investment products have seen a multi-week inflow of capital, according to Coinshare’s weekly Flows by Asset,” he noted.
The aforementioned CoinShares report shows that these investment firms received more than $8 million in inflows during the week through Friday the 14th. October, representing the fifth consecutive week that these products benefited from the supply.
Disclosure: I own some bitcoin, bitcoin cash, litecoin, ether, EOS and sol.