Bitcoin (CRYPTO: BTC) Outflows from cryptocurrency exchanges saw the biggest one-day surge in four months.
What happened: According to data from on-chain analytics platform CryptoQuant, more than 30,000 bitcoins worth $1.3 billion were withdrawn from crypto exchanges on January 11.
He wrote: “With short-term optimism returning to the cryptocurrency market, Bitcoin yesterday saw the largest outflows from exchanges in over a month,” he wrote. Bloc In a tweet on Wednesday.
The BTC/USD pair has gained momentum since the event, trading at $43,700 as of Thursday morning.
why does it matter: Outflows from exchanges are seen as an indicator of bullish sentiment in the market – the reason being that whales and larger stockholders are believed to move coins from exchanges to storage for long-term holding.
The last time exchanges recorded outflows of this size was in September 2021 when the price of Bitcoin was on a downtrend, before regaining its momentum and climbing towards a new all-time high.
The leading digital asset fell from $52,633 in September to $41,000, but rose over the next two months to reach its pre-$69,000 high in November 2021.
The previous year’s high of 1,825,934.030 was noted on January 11, 2022
Scale view: https://t.co/cHhwgaCLee pic.twitter.com/OpCrpS1l5D
– glassnode alerts (glassnodealerts) January 12 2022
Data from a glassnode shows that whales are not the only large bitcoin holders accumulating the cryptocurrency. Bitcoin miners also hold their BTC positions, and in some cases earn more.
Last week, a bitcoin miner was listed on the NASDAQ stock exchange Bitfarms Ltd. (NASDAQ: BITF) acquired 1,000 BTC worth $43.2 million, increasing its position in Bitcoin to 4,300 BTC.