$2.5 Billion In Bitcoin Flows Out Of Centralized Exchanges – Time To Buy?



Investor
confidence
appears
to
be
on
the
rise
in
the
crypto
market
lately,
and
Bitcoin
has
been
a
major
beneficiary
of
this

positive
trend.
Consequently,
there
has
been
a
continuous
accumulation
of
BTC
amongst
large-scale
investors
despite
its
somewhat
frustrating
price
action.

How To Get Free Crypto  


The
premier
cryptocurrency’s
price
may
have
ended
May
beneath
the
psychological
$70,000
mark,
despite
having
touched
the
level
a
couple
of
times
in
the
last
two
weeks
of
the
month.
The
latest
on-chain
data
suggests
that
the
faith
in
Bitcoin
has
only
continued
to
grow
strong.


Is
BTC
Primed
For
A
Price
Rally?


Prominent
crypto
analyst
Ali
Martinez
shared
via
a

post
on
the
X
platform
that
substantial
amounts
of
Bitcoin
have
been
making
their
way
out
of
centralized
exchanges.
This
on-chain
observation
is
based
on
the
CryptoQuant
Exchange
Reserve
metric,
which
tracks
the
amount
of
a
particular
cryptocurrency
in
the
wallets
of
all
centralized
exchanges.


Related
Reading


An
increase
in
the
metric’s
value
indicates
that
investors
are
making
more
deposits
than
withdrawals
of
a
crypto
asset
(Bitcoin,
in
this
scenario)
into
centralized
exchanges.
Meanwhile,
when
the

metric
declines
in
value,
it
implies
that
more
coins
are
moving
out
than
into
the
trading
platforms.


According
to
Martinez’s
post,
more
than
37,000
BTC
(worth
roughly
$2.53
billion)
have
been
transferred
out
of
crypto
exchanges
in
the
past
three
days.
This
significant
exodus
of
funds
indicates
a
change
in
sentiment
and
the
long-term
holding
strategy
of
Bitcoin
investors. 

Coinbase Banner  
Chart
showing
BTC
balance
on
all
exchanges
|
Source:

Ali_charts/X


While
it
is
difficult
to
tell
the
exact
rationale
behind
the

massive
outflow
from
exchanges,
the
movement
of
funds
from
trading
platforms
suggests
an
increase
in
investor
confidence.
This
indicates
that
many
investors
might
be
convinced
by
the
future
promise
of
Bitcoin,
thereby
opting
to
store
their
assets
in
self-custodial
wallets
in
the
long
term.


What’s
more,
the
downward
spiral
of
Bitcoin’s
supply
on
centralized
exchanges
could
trigger
a
bullish
rally
for
the
premier
cryptocurrency’s
price.
The
sustained
decline
in
BTC’s
balance
on
exchanges
could
result
in
a

supply
crunch.


For
context,
the
supply
crunch
refers
to
a
scenario
or
period
during
which
the
supply
of
a
particular
asset
is
lower
than
the
demand
for
it,
resulting
in
a
surge
in
the
asset’s
value. 


Bitcoin
Price
At
A
Glance


As
of
this
writing,
the

price
of
Bitcoin
stands
around
$67,489,
reflecting
a
1.5%
decline
in
the
past
24
hours.
This
sluggish
performance
in
the
past
day
underscores
the
premier
cryptocurrency’s
struggles
in
the
past
week.
According
to
CoinGecko’s
data,
the
BTC
price
is
down
by
nearly
2%
in
the
last
seven
days.

FreeBitcoin Banner  


Related
Reading

BTC
price
thickens
around
$68,000
on
the
daily
timeframe
|
Source:
BTCUSDT
chart
on

TradingView


Featured
image
from
iStock,
chart
from
TradingView

Go to Source
Author: Opeyemi Sule


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