Bitcoin Exchanges See Largest BTC Outflow in 3 years
A record single-day Bitcoin (BTC) outflow from crypto exchanges is triggering renewed optimism for further parabolic price advance for the largest cryptocurrency by market capitalization. Bitcoin is currently up more than 150 percent year-to-date (YTD) and recently set a new all-time high (ATH) less than three years to the date of its previous ATH.
43,000 BTC Removed from Bitcoin Exchanges on Dec. 10
Tweeting on Friday (Dec. 11, 2020) crypto data analytics provider Arcane Research revealed data from Glassnode showing 43,000 BTC (about $774 million) outflow from cryptocurrency exchanges on Dec. 10. This figure which constitutes a 1.81 percent decline is the largest decline in the Bitcoin balance on exchange platforms since late Aug. 2017.
In Bitcoin terms, the 43,000 BTC outflow also corresponds to the largest drop in actual Bitcoin amount from exchanges since July 28. 2017. At the time, over 50,000 BTC moved from exchanges to non-custodial wallets.
Less than six months after that monumental day in 2017, Bitcoin reached its previous ATH with the price almost eclipsing the $20,000 mark. Having such a situation reemerge at this present time indicates the presence of bullish optimism with holders betting on another significant upward push for Bitcoin in the coming months.
After months of sideways accumulation, Bitcoin experienced a major breakout in November. Following a sudden spike between mid and late October, Bitcoin went on to add over $5,700 to its price in November, earning a 42% monthly close-out.
BTC Hodling for Resumption of Bullish Advance
With over $774 million in Bitcoin leaving exchanges on a single day, it appears some holders are gearing up for another major upward push. Since setting a new ATH, Bitcoin has been unable to breach the psychological $20,000 price landmark.
Some commentators say selling pressure at Bitcoin’s ATH is likely responsible for the short-term retrace. Indeed, Bitcoin has seen successive price corrections taking its value below the $18,000 mark.
As previously reported by BTCManager, the bull case for Bitcoin is still significant as institutional endorsement for BTC continues. Asset management giant Fidelity recently announced plans to begin accepting Bitcoin as collateral for cash loans.
Indeed, 2020 has seen tangible institutional adoption of Bitcoin with publicly-listed companies like MicroStrategy and Square holding BTC as a treasury reserve asset. Earlier in December, BTCManager reported a Harris Poll showing over a third of the respondents predicting that BTC will outlast the euro.