Significant Bitcoin Outflows from Centralized Exchanges
On Wednesday, centralized exchanges witnessed an astonishing net outflow of over 17,000 BTC, translating to more than $1.6 billion at the current market price of $98,600. This substantial movement of assets was highlighted by Andrew Dragosch, head of research at Bitwise, who referenced data from Glassnode. Notably, this marks the largest single-day withdrawal of bitcoins since April 2024.
Dragosch commented on social media platform X, stating, “Whales are buying this dip.” This phrase is often used to describe the actions of large investors who tend to accumulate assets during price declines. The significant outflow of coins from exchanges typically indicates a bullish market sentiment, as investors are inclined to take direct custody of their assets when planning for long-term holdings.
It’s essential to note, however, that while blockchain data is a valuable tool for assessing market dynamics, it can occasionally be distorted by internal wallet transfers conducted by exchanges themselves.
In a more detailed breakdown, Coinbase reported a staggering net withdrawal of over 15,000 BTC. Further analysis by Timechainindex.com revealed that Coinbase had split four addresses containing a total of over 20,000 BTC into 60 new addresses. This maneuver could suggest potential significant purchases by Exchange-Traded Funds (ETFs) or MicroStrategy within this week.
Moreover, on-chain data compiled by CryptoQuant showed that all cryptocurrency exchanges combined experienced a cumulative negative net flow of 47,000 BTC on Wednesday, with about 15,800 BTC of that total specifically linked to Coinbase.
In the midst of these developments, Bitcoin briefly dipped below $96,800 during late trading hours in the U.S. However, it rebounded early today after Eric Trump, son of former President Donald Trump, urged the family-affiliated crypto platform World Liberty Financial to initiate its first investment in Bitcoin.
