Exchanges See Billions In Bitcoin leave As BTC Maintains Above $40,000

Best Owie

1 year ago

3 mins read

Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Created by industry experts and meticulously reviewed

The highest standards in reporting and publishing

How Our News is Made

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Ad discliamer

Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio.

Bitcoin’s stint above $40,000 continues as the market ushers in another week of trading. The weekend had been a rollercoaster for investors but prices have since started to level out. With the break above $40,000 last week, faith has gradually returned to the market, causing more people to invest in the digital asset. Amid this has emerged an accumulation pattern that suggests a bullish outlook for the long-term.

Exchange Outflows Rise

Over the past week, bitcoin exchange outflows have been on the rise. This is marked by the recovery of the digital asset’s value above the $40,000 level. This coveted level can be elusive for the cryptocurrency. However, with so many breaks above it in the first three months of the year, it has been able to garner enough support to enter an accumulation trend.

Data from Glassnode shows that the previous week has seen more exchange outflows than inflows. Recording the daily numbers via reports shows that on a daily, bitcoin investors are choosing to move their coins out of these (centralized) exchanges to other wallets. An example of this was Saturday which saw $1.6 billion in BTC leaving exchanges in a single day.

On the weekly scale, the outflows have continued to surpass inflows, although not by a large margin. In a recent report, the on-chain data aggregator showed that $6.3 billion in BTC left exchanges compared to the $6 billion that were moved in.

🚨 Weekly On-Chain Exchange Flow 🚨#Bitcoin $BTC
➡️ $6.0B in
⬅️ $6.3B out
📉 Net flow: -$298.2M#Ethereum $ETH
➡️ $5.2B in
⬅️ $6.7B out
📉 Net flow: -$1.5B#Tether (ERC20) $USDT
➡️ $4.1B in
⬅️ $4.2B out
📉 Net flow: -$99.0Mhttps://t.co/dk2HbGwhVw

— glassnode alerts (@glassnodealerts) March 21, 2022

Bitcoin Investors Are Accumulating

This trend of outflows surpassing inflows usually points towards one thing and that is the fact that investors are accumulating. Market trends can have a big impact on this, especially if the price is low. However, with bitcoin touching as high as $69K last year and now only trading at $41,000, a lot of investors might see this as a good time to fill up their bags while they wait for the price to recover towards another all-time high.

BTC recovers above $41K | Source: BTCUSD on TradingView.com

Another reason for exchange outflows being so high is for safekeeping. A saying in the crypto space that is used a lot is “Not your keys, not your coins.” This simply means that for an investor’s coins to be truly safe, they have to keep it in a wallet whose private keys they control and that is not the case on exchanges.

Instead, investors prefer to remove their coins from these exchanges and send them to wallets that they control. This is especially important for investors who are holding their coins for the long term. This way, they are safe if anything, say a hack, happens to an exchange. It also keeps investors’ wealth from being controlled by any governmental entities.

Featured image from NewsBTC, chart from TradingView.com

Best Owie

Best Owie is a seasoned managing editor with a wealth of experience currently serving as the Managing Editor at NewsBTC. Best is a highly skilled professional with a track record of producing engaging and informative content. With a keen eye for detail and a passion for accuracy, Best is committed to ensuring that each article published meets the highest standards of quality.

Best has over six years of experience in the crypto industry and has overseen the creation and publishing of thousands of articles over the years. Best is always abreast of everything that is going on in the crypto industry in order to create and curate the most relevant content for readers. This shines through in Best’s publications, which are always clear and concise, enabling easy reading and understanding for all.

Best is also an avid learner and advocate for new technology. This has seen Best dive into topics in areas such as decentralized finance (DeFi), non-fungible tokens (NFTs), Layer 2 blockchains, etc. In addition to this, Best is a vocal member of the crypto community across various social media platforms such as X and Reddit. Best’s work garners tens of thousands of readers monthly, who rely on the information in these publications to keep up-to-date with everything happening in the crypto community.

Best’s articles explore breaking news, intricate systems such as yield farming, liquidity pools, and other decentralized finance (DeFi) systems. This is because Best understands the importance of information to gaining financial freedom and believes that everyone should have access to this information.

Best also believes in leveraging the blockchain for philanthropy to create the most positive social impact. This involves work with charitable organizations focused on financial literacy and education. With each article, Best lends a voice to important issues such as a more financially inclusive future, transparent systems for growth and development, and technology that is not self-serving but one that serves all of humanity.

When not curating engaging content, Best can be found reading a book with a cup of hot chocolate, enjoying a Netflix series, or exploring the outdoors with Green - the world’s most quiet and well-behaved Husky. Best’s interests also span other industries such as art, finance, and security, attending seminars and conferences in not just the crypto industry but other industries as well.

As an animal lover, Best is also involved with charities for animals, local shelters, and rescues. Best is also involved in local events that promote inclusivity, such as being a prominent member of hiking clubs and a cycling club, as well as being a part of a very happy group of animal lovers.

Best is a true professional in every sense of the word, with an exceptional dedication to producing high-quality work. This shines through in Best's work on and off the clock. These include advocating for inclusive crypto education for all, the impact of financial illiteracy, and the benefits of adopting new technologies such as cryptocurrencies. Best’s prolific career in the media industry is a testament of how hard work and dedication pays.

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.