Recent data from blockchain analytics firm IntoTheBlock (ITB) reveals a significant surge in Bitcoin outflows from exchanges, with approximately $750 million in assets withdrawn on September 10, 2024.
This marks the largest net outflow of Bitcoin (BTC) since May, potentially signalling a shift in investor sentiment as the cryptocurrency’s price hovers around $57,000.
Juan Pellicer, a senior researcher at ITB, reportedly attributes this sentiment shift to investors anticipating “price increases” and moving coins to private wallets. He notes that regulatory concerns and institutional accumulation can drive such large-scale transfers from exchanges.
However, Pellicer suggests that the significant volume of BTC leaving exchanges on September 10 likely indicates notable institutional involvement, as retail investors rarely move such large amounts collectively. He explains that as Bitcoin leaves exchanges, the available supply for trading decreases, potentially leading to upward price pressure if demand remains stable or increases.
Notably, DeFi Planet recently reported that Tokyo-based investment firm Metaplanet is still going strong with its Bitcoin accumulation strategy, which it announced in May. The firm revealed that it acquired 8.464 Bitcoins on September 10, 2024. The purchase, valued at around 300 million yen ($2 million), has increased the company’s total Bitcoin holdings to 398.832 BTC, worth approximately 3.75 billion yen ($26 million).
The trend also points to a growing preference among Bitcoin holders for self-custody and cold storage solutions, driven by security concerns, according to Pellicer. He noted that another possible reason for the increase in outflows could be the transfer of Bitcoin to cold storage hardware wallets, which traders and investors commonly use to secure their assets off exchanges.
Historically, large Bitcoin outflows like this have been associated with subsequent price increases, primarily due to reduced exchange supply and increased demand. Pellicer confirms this correlation, explaining that it “stems from basic supply-demand dynamics.”
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