Traders Move $800 Million worth of BTC Away From Exchanges: Details
Despite major market corrections, investors are unwilling to sell their assets
A total of $800 million worth of BTC was moved from exchanges amid the sudden surge in the price of the first cryptocurrency, which is currently trading well above $40,000.
The sudden surge in price was quite a surprise to a market full of on-chain and fundamental data that suggested the further demise of digital gold as the market failed to recover on several occasions.
But while the majority bet on the end of the bull market and a further decline below $30,000, centralized exchanges have continued to see losses in their reserves, indicating that traders are not actively selling as the majority thought.
The first positive sign for the industry was the “decoupling” of most cryptocurrencies on exchanges and the stock market which plummeted as Bitcoin and other digital assets traded either in the neutral or positive zone.
How do currency outflows affect the market?
Usually, a negative exchange rate flow is considered a good sign for the market, as the selling pressure during periods of large outflows is significantly less compared to periods when traders and investors are actively moving their money to centralized or decentralized exchanges.
Previous 3-month high of 1,217,994 was observed on February 4, 2022
— glassnode alerts (@glassnodealerts) February 6, 2022
As current exchange rate flows in BTC remain negative, we can conclude that the majority of the market is not looking forward to selling its holdings despite Bitcoin’s negative performance in recent months.
At the time of writing, Bitcoin is trading at $41,725 with a local high of $41,983. The cryptocurrency is showing another positive trading day at 0.72%. Previously, Bitcoin pumped 12% in one day, jumping from $37,100 to $41,700 in a matter of hours.