Bitcoin Sees Historic Outflows from Centralized Exchanges
Bitcoin Outflows Reach Historic Levels
Centralized cryptocurrency exchanges experienced a significant outflow of Bitcoin (BTC) on Wednesday, with over 17,000 BTC—valued at more than $1.6 billion—being withdrawn. This marks the largest single-day withdrawal since April 2024, suggesting a shift in investor behavior.
Coinbase Leads the Outflows
Coinbase, a leading cryptocurrency exchange, accounted for the majority of these outflows, processing net withdrawals of over 15,000 BTC. Additionally, data revealed that Coinbase redistributed over 20,000 BTC from four addresses into 60 different addresses on the same day. This activity hints at potential large-scale purchases by entities such as ETFs or institutional investors.
Broader Market Trends
The broader crypto market reflected this trend, with CryptoQuant's on-chain data showing a net outflow of 47,000 BTC across all exchanges. Coinbase alone contributed 15.8K BTC to this total. This significant movement of Bitcoin off exchanges may indicate a preference for holding BTC in personal wallets, often seen as a bullish signal.
Market Reaction and Rebound
Initially, the market responded negatively to these outflows, with Bitcoin's price dipping below $96,800 during late U.S. trading hours on Wednesday. However, sentiment shifted positively after news emerged that Eric Trump, son of former President Donald Trump, encouraged a crypto platform linked to the Trump family to invest in Bitcoin. This endorsement appeared to contribute to a rebound in Bitcoin's value.
This movement underscores the dynamic nature of the crypto market and the influence of investor sentiment and high-profile endorsements on Bitcoin's price.
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