1B Leaves Exchanges in Largest Single-Day Outflow in 12 Months
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Net outflows from exchanges are often taken to represent investors' intention to hold coins for long-term. Recent reports signals on chain activity continues to support the bullish case.
This week just over 28,000 $BTC worth $1.19 billion left centralized exchanges. The Wednesday activity was the largest single-day outflow in BTC terms since Dec. 2022. Coinbase, which is the custodian for nine of the 12 proposed spot BTC exchange-traded funds (ETFs) in the U.S. saw an outflow of over 18,000 BTC on their own.
What this tells me is there is some speculation about institutional activity ahead of an expected ETF launch in early January. The overall BTC balance in wallets tied to centralized exchanges has dropped to 2,327,025 BTC, the lowest since April 2018. As liquidity drops this means fewer coins on an exchange which would lead to potential price appreciation as buyers need to pay up for the limited coins.
This all makes sense as the race to launch a bitcoin ETF is near its conclusion. Friday some of the biggest Wall Street firms finalized their offerings' paperwork ahead of approval from the U.S. Securities and Exchange Commission (SEC). BlackRock, Fidelity and Invesco, revealed key details in their fillings which hs me excited. They will be making good money from this move which means crypto will have the backing of large financial institutions to help with lobby. All I know is we will either have a new bull cycle or a massive sell the news event once the ETF is launched. I'm betting ona new bull cycle, but I have been wrong so many times lately. As always do you own research and trade safely.