Outflow of funds from Bitcoin exchanges became the highest since May
The month of September has seen Bitcoin navigate a tumultuous landscape, experiencing several peaks and valleys, highlighted by a notable ascent yesterday that propelled its value to surpass $58,000.
Yet, Bitcoin might be gearing up for another upward movement, sparked by significant withdrawals from exchanges, which have recently soared to a peak not seen in several months.
According to IntoTheBlock statistics, September 10 recorded the most substantial Bitcoin withdrawals from exchanges since May, indicating the highest surge in this activity over the past four months. The reduction in Bitcoin reserves on these platforms diminishes the potential for immediate selling, often interpreted as an optimistic signal for the cryptocurrency's future.
Indeed, ITB’s analysis highlighted that a similar reduction in Bitcoin available on exchanges in late May preluded a price ascent, taking the cryptocurrency from just below $68,000 to $72,000 in a matter of days.
In contrast, a spike in inflows to exchanges in late July brought about a decrease in value, with Bitcoin's price dropping from above $68,000 to below $64,000. Furthermore, the price experienced a more pronounced fall in early August, descending to a low not seen in several months of under $50,000.
Thus, the recent trend of withdrawals may indicate forthcoming upward trends for Bitcoin. The cryptocurrency's value has rebounded from a recent dip following the Consumer Price Index (CPI) announcement to $55,500 and currently hovers above $58,000, with the market eyeing the upcoming Federal Open Market Committee (FOMC) meeting in the United States next week.
Beyond the shrinking reserves on exchanges, the increasing pool of stablecoins prepared for purchasing could further drive a price boost for Bitcoin or alternative cryptocurrencies.
While the noteworthy withdrawal of $750 million in Bitcoin from exchanges was recorded on September 10, that same day observed $117 million in net inflows into spot BTC ETFs, marking the most substantial daily increase since August 26.
However, the dynamic shifted on September 11 as investors withdrew a total of $43.9 million from these financial instruments. Ark Invest’s ARKB faced the steepest losses with $54 million pulled, whereas Fidelity’s FBTC saw an inflow of $12.6 million.
