Bitcoin Worth $1B Leaves Exchanges in Largest Single-Day Outflow in 12 Months
On Wednesday, just over 28,000 BTC worth $1.19 billion left centralized exchanges, the largest single-day outflow in BTC terms since Dec. 14, 2022.
Bitcoin Worth $1B Leaves Exchanges
On Wednesday, there was a significant outflow of Bitcoin from centralized exchanges. Just over 28,000 BTC, valued at $1.19 billion, were withdrawn in a single day. This represents the largest BTC outflow since December 14, 2022.
This data was tracked by blockchain analytics firm Glassnode, who noted that such net outflows are often interpreted as a sign that investors are choosing to hold their coins for the long term, or prefer to have direct custody of their assets.
The popular cryptocurrency exchange Coinbase, which acts as 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 Wednesday. This information, provided by analytics firm CryptoQuant, has led to speculation about institutional activity in anticipation of an ETF launch in early January.
Potential Impact on Bitcoin Price
The overall BTC balance in wallets tied to centralized exchanges has dropped to 2,327,025 BTC, the lowest level since April 2018. This decrease in the number of coins held on exchanges suggests weakening supply-side pressures, which could potentially lead to price appreciation.
At the time of writing, the price of Bitcoin was $42,700, representing a 158% increase year-to-date.
It is worth noting that Coinbase CEO Brian Armstrong has disputed the initial statistic provided by CryptoQuant, stating that it is not reflective of their internal data.
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Omkar Godbole is a Co-Managing Editor on CoinDesk's Markets team, and you can follow him on Twitter @godbole17.
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