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June 27, 2022
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Bitcoin’s outflow from exchanges has reached an annual peak. A bullish signal?

According to on-chain data, BTC investors have stopped depositing their assets on cryptocurrency exchanges. They are now starting to withdraw large amounts of funds. Moreover, it turned out that most of the payouts came from retail investors. However, as reported earlier, whales and institutions have also been accumulating BTC in recent times.

Withdrawals from exchanges in early highs

The latest data from CryptoQuant shows the latest trends in withdrawals and deposits to cryptocurrency exchanges.

As you might expect, their behavior also has a lot to do with price movements. Generally, breeders send their coins from cold wallets to trading platforms when they intend to sell them. And vice versa – when they pay them back, they have a plan to breed them for a longer period of time.

That is why deposits soared to new heights in mid-May. All thanks to FUD caused by Elon Musk and China. At that point, the price of bitcoin started to reverse slowly, but it fell by another $ 20,000 to around $ 30,000.

As the dust settled, most investors cut their deposits. Now, however, it looks like they have completely changed their minds recently, as shown in the chart below.

source: CryptoQuant

At the same time, the number of withdrawals has increased sharply. This suggests investors may want to breed their coins rather than panic selling – as they did in May.

Interestingly, the analytics firm also stated that “most of the transactions (5,800) came from Gate_io” and all of them came from retail investors due to their relatively small size (less than one BTC).

Whales and institutions also buy

In addition to smaller investors buying and withdrawing bitcoin from exchanges, other reports have indicated that so-called whales have also started to do the same.

After a short hiatus, and even a sale, in June, wallets containing 100 to 10,000 bitcoins accumulated around 60,000 coins in one day. As a result, their total ownership has increased to over nine million BTC.

Demand for Canada’s first Bitcoin ETF also prompted the company behind it – Purpose Investments – to make sizeable assets. Its shares grew 30% in a few weeks and the Purpose BTC ETF owned around 22,500 coins.

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