Bitcoin is currently trading at $51,660, still ranging around the $52,000 price level in the past week. Despite the sideways price movement, on-chain data from last week has shown continued bullishness among investors. Data from on-chain analytics platform IntoTheBlock has shown over $540 million worth of Bitcoin was removed from centralized exchanges last week, the highest net outflow in eight months.
Major outflows like this typically signal that big investors are moving their Bitcoin into private storage in preparation for a major price swing as Bitcoin holders continue to anticipate a rally as February draws to a close.
Bitcoin Sees Highest Weekly Outflows From Exchanges In 8 Months
Bitcoin has been on a tear recently, currently up by 29% in a 30-day timeframe. Although currently on a hiatus, the crypto is showing no sign of ending this rally soon, with various on-chain metrics pointing to bullishness. One of these is the vast amount of net Bitcoin outflows from exchanges.
Notably, IntoTheBlock exchange metric reveals that Bitcoin’s net weekly outflows from exchanges have been on the rise since spot Bitcoin ETFs went live in January. This week, net outflows reached $540 million, the highest amount since June 2023.
$540M worth of Bitcoin was withdrawn from CEXs, the largest weekly net outflows since June 2023 pic.twitter.com/L8uG9k43RZ
— IntoTheBlock (@intotheblock) February 23, 2024
When Bitcoin leaves exchanges, it typically signals that investors are looking to hold it for the long term. Outflows also reduce the amount of BTC available for sale on exchanges, which could drive the price up even further.
Total crypto market cap is currently at $1.925 trillion. Chart: TradingView.com
Metrics from other analytics platforms support the bullish sentiment from IntoTheBlock. According to a Glassnode chart shared by crypto analyst Ali Martinez on social media, accumulation around the $51,000 to $52,000 price level has remained incredibly strong.
A recent revelation made by Santiment revealed a pattern of accumulation among large Bitcoin investors. The amount of Bitcoin whales holding more than 1,000 BTC has increased by 147 wallets, a 7.4% rise since the beginning of February. Naturally, the accumulation can be linked to investors buying more BTC from exchanges and transferring them out, leading to an increase in CEX outflows.
Bitcoin To $60,000?
While outflows alone don’t guarantee a price rally, current market factors point to Bitcoin reaching $60,000 before the next halving in April. The majority of Bitcoin’s price rally is centered around spot Bitcoin ETFs increasing institutional interest in the crypto market. These ETFs have unleashed a wave of new capital into the Bitcoin market, pushing it past various key price levels.
If this continues, we could see Bitcoin push well above $60,000 for the first time since November 2021.
Featured image from Pexels, chart from TradingView
