Online data from IntoTheBlock indicates that weekly net flows from centralized exchanges have reached a peak. About $540 million USD worth of Bitcoin has been withdrawn this week, marking the largest outflow since June 2023.
At the beginning of the week, Julio Moreno, the head of research at CryptoQuant, identified the largest hourly outflow of Bitcoin this year from Coinbase. According to him, 18,746 BTC, estimated at $1 billion USD, was moved in two transactions within the same block.
The withdrawal of BTC from centralized exchanges is seen as a bullish sign, indicating reduced selling pressure. Market observers believe that this money is being transferred to cold wallets in preparation for a price increase, especially with the Bitcoin halving just two months away.
Indeed, the rapid outflow has led to a decrease in Bitcoin balances on major exchanges like Binance and Coinbase. Glassnode data reveals that cryptocurrency exchanges currently hold only 2.3 million BTC, the lowest level since 2018.
Meanwhile, whales holding over 1,000 BTC are undergoing significant accumulation. Online data from Santiment shows that the number of these addresses has increased by 7.4% in the past month, with 147 new wallets joining this category, marking the fastest growth in two years.
CryptoQuant corroborates this, noting that the holdings of large institutions have risen to their highest level since July 2022, reaching a total of 3.964 million BTC, up from 3.694 million BTC in December 2022.
The increase in whale activity signals strong confidence in Bitcoin’s future trajectory. Historically, such significant accumulations precede notable price fluctuations, indicating the potential for another bullish wave in the market.
CryptoQuant emphasizes:
Large entities (1K to 10K BTC) increasing their holdings correlates with higher prices because they represent increasing demand for Bitcoin.
Of note, recently launched Bitcoin spot ETFs in the US are among the large entities buying Bitcoin. These funds currently hold nearly 300,000 BTC, emerging as a significant demand source for the leading asset.