Bitcoin Flowing Out Of Major Exchanges—Supply Squeeze Soon?
The cryptocurrency market woke up following Easter Sunday, with Bitcoin leading the way with almost a double-digit rise. While BTC is over $94,000, the leading cryptocurrency seems to be losing steam.
As large sums of BTC have left big centralized exchanges in recent days, investors seem to be becoming more optimistic about this surge. See how much investors moved in the previous few days.
On Friday, April 25, Binance removed 27,750 BTC (worth $2.63 billion at current prices), according to CryptoQuant. Recent withdrawals are the controlled exchange's third-largest net outflow.
The migration of large crypto quantities from exchanges that sell to non-custodial wallets shows a shift in investor opinion and strategy. Sizeable exchange outflows generally indicate investor confidence in an asset's long-term prospects.
Wedson stated that recent outflows do not ensure a Bitcoin price increase, but they do indicate substantial institutional involvement, which frequently precedes big volatility. A crypto expert said that significant exchange outflows didn't stop the drop, citing China's 2021 crypto prohibition.
As with the FTX crash, Wedson noted that Bitcoin withdrawals over many days preceded a price bottom and market rebound. The internet commentator suggested focusing on the exchange netflow pattern rather than a particular day.
big withdrawals sometimes indicate institutional or big investor accumulation, indicating positive optimism.
The expert predicted a supply crunch if declining exchange reserves coincide with rising spot demand or ETF inflows, driving the price up.
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