Bitcoin: 111,000 BTC Withdrawn from Crypto Exchanges, Exploring the Reasons
According to analyst Ali, there has been a significant movement of Bitcoin (BTC) out of known crypto exchange wallets, with nearly 111,000 BTC, worth approximately $7.55 billion, withdrawn in the past month.
This trend indicates a gradual decrease in BTC supply on exchanges, implying a shift away from keeping Bitcoin on these platforms.
One possible explanation for this Bitcoin exodus is the growing preference among investors to store their Bitcoin in private wallets rather than on exchanges. This suggests a desire for greater control and security over their holdings.
Additionally, institutional adoption of Bitcoin has been on the rise, and institutional investors may opt to secure their assets in private wallets or cold storage for long-term investment purposes.
The withdrawal of such a large amount of Bitcoin from exchanges could potentially lead to a supply crunch, where demand for BTC exceeds the available supply. This scenario could pave the way for a bullish rally in Bitcoin’s price.
In a recent tweet, Ali mentioned 21,400 BTC, valued at around $1.40 billion, being transferred to accumulation addresses that have never spent funds in a single day.
Furthermore, data from on-chain analytics firm IntoTheBlock reveals that Bitcoin ETFs have accumulated over 4% of the total BTC supply in less than three months. The balance of whale addresses, holding 1,000 BTC or more, has surged since the inception of these ETFs, reaching its highest point since June 2022. This year alone, whales have accumulated an additional 220,000 BTC, totaling $14.2 billion, with a significant portion coming from net inflows into ETFs. This surge in whale accumulation has contributed to Bitcoin reaching new all-time highs and has further fueled the demand for cryptocurrencies.
As of writing, Bitcoin’s price has increased by 2.23% in the past 24 hours, reaching $69,286.