Traders Take $800 Million in Bitcoin Off Exchanges

Despite major crypto market corrections, investors are hesitant to sell their holdings.


Despite major crypto market corrections, investors are hesitant to sell their holdings.
Bitcoin | Image: Optimisus

During the dramatic price spike of the first cryptocurrency, which now trades far above $40,000, a total of $800 million worth of BTC was shifted from exchanges.


The unexpected price spike came as a shock in a market where on-chain and fundamental data suggested that digital gold would continue to decrease as the market failed to rebound several times.


However, while the majority predicted the end of the bull market and a collapse below $30,000, centralized exchanges were consistently losing reserves, indicating that traders are not actively selling as the majority predicted.


The "decoupling" of the majority of cryptocurrencies on exchanges and the stock market, which collapsed as Bitcoin and other digital assets traded in the neutral or positive zone, was the first encouraging indicator for the industry.


What impact do exchange outflows have on the market?


Negative exchange flow is usually regarded as a positive indication for the market, as selling pressure is far lower during periods of substantial outflows than during periods when traders and investors are actively shifting their funds to centralized or decentralized exchanges.



We may conclude that, despite Bitcoin's poor performance in recent months, the majority of the market is not planning to sell its holdings because current exchange flows in BTC remain negative.


Bitcoin is currently trading at $41,725 with a local high of $41,983. The cryptocurrency has had another good trading day, with a gain of 0.72%. Bitcoin had previously risen by 12% in a single day, from $37,100 to $41,700 in a matter of hours.