Bitcoin withdrawals reach one of the highest levels of the year

Quick Take

The current year has marked a significant shift in the Bitcoin exchange flow. A renewed momentum in Bitcoin withdrawals is evident, with over 61,000 BTC recently withdrawn, a substantial surge from the year-to-date low of nearly 43,000 BTC. This uptick suggests an increasing preference for investors to hold their Bitcoin assets off-exchange, possibly indicating a stronger long-term belief in the value of Bitcoin.

Concurrently, Bitcoin deposits into exchanges are on a consistent downtrend, even with a recent minor uptick to 50,000 BTC, suggesting lesser selling pressure in the market. The most striking is the gap between withdrawals and deposits, standing at a remarkable 10,000 BTC, marking it as the largest this year and the second-largest ever. This differential is only shadowed by the FTX collapse aftermath, which witnessed an overwhelming peak of over 80,000 BTC withdrawn.

These trends could suggest a shift in investor sentiment, with more investors seemingly opting to hold their assets long-term rather than seeking immediate liquidity on exchanges.

Exchange Transaction Dominance: (Source: Glassnode)
Exchange Transaction Dominance: (Source: Glassnode)

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Source: https://cryptoslate.com/insights/bitcoin-withdrawals-reach-one-of-the-highest-levels-of-the-year/