$670M Worth of Bitcoin Are Moved Out of Centralized Exchanges
“When investors are looking to hold coins for a long duration they like to have direct custody of their assets.”
According to the data shared by Glassnode, more than 18,000 bitcoins having a value of around $670 million were taken out from centralized exchanges. Alone, 9,500 Bitcoins were taken out from crypto exchange BitMEX.
This large outflow of Bitcoins is an indicator of a bullish run as most investors who wish to hold their coins for a long duration of time intends to have direct custody of them.
However, outflows are not always positive indicators, sometimes investors tokenize their coins drained from centralized exchanges on the Ethereum blockchain to earn extra yield. There has also been an increase of 13,000 in the number of wrapped Bitcoin (WBTC), this year. WBTC is the first ERC20 token backed 1:1 with Bitcoin and is one of the top cryptocurrencies on the Ethereum network.
Whatever the reason may be, an increase in the number of coins withdrawn means that there are very few coins available for sale on exchanges, indicating that there is a high probability that the market will rise.
Disclaimer: The article should not be considered as any financial advice. It is advisable to conduct thorough research before investing.
Photo by – vjkombajn on Pixabay