Wallets holding between 1000 BTC and 10,000 BTC have been accumulating the asset since late September.
A report by data provider CryptoQuant has disclosed that 48,000 Bitcoin were moved out of the Coinbase Pro exchange, the biggest ever outflow since the June crash and the second biggest of all time. As of the time of moving, the value totaled $940 million. Also, transactions were split into batches of 122 Bitcoins. According to Maarten Regterschot, a CryptoQuant contributing analyst, this is a similar trend that occurred several times in the 2021 bull run. Bitcoin is currently down by 1.5% in the last 24 hours, trading at $19,274. Ethereum is also down by 2.73% and trading at $1302. Bitcoin’s correlation with stock has also been observed to have fallen from its all-time high last month.
“Bitcoin has failed to make any significant moves since early June, with prices bouncing between an increasingly narrow range. Considering bitcoin’s current low price levels, trade volumes have remained relatively resilient since last year’s all-time highs. There is no discernable decrease in volumes since September despite the increasingly low volatility,” said Kaiko’s director of research, Clara Medalie.
According to data, more than 121,000 Bitcoin ($2.4 billion) have left trading platforms including Coinbase, FTX, etc. in the past 30 days. While this was initially thought to be an indication of selling pressure, experts explain that this is a bullish signal. According to them, Traders usually move coins out of exchanges when they wish to hold them for the long term.
Similarly, a spike in Bitcoin inflows is usually a bearish signal as it indicates that supplies are made available for selling. A similar trend happened when Bitcoin staged a rally to hit $24,500. Shortly before that, it can be recalled that the asset bottomed at $18,000 and saw outflows from exchanges hitting nearly 68,000 BTC on June 17.
Considering that Bitcoin is hovering within the $18,000–$20,000 range, the market could see a similar bull run. Several on-chain metrics including Accumulation Trend Score by Cohort notes have disclosed that wallets holding between 1000 BTC and 10,000 BTC have been accumulating the asset since late September.
“Bitcoin prices have shown remarkable relative strength of late, amidst a highly volatile traditional market backdrop. Several macro metrics indicate that Bitcoin investors are establishing what could be a bear market floor, with numerous similarities to previous cycle lows,” according to Glassnode.
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