Against the market correction on June 7, users withdrew 22,550 BTC from cryptocurrency exchanges, according to data from Glassnode cited by Lex Moskovski, chief investment officer of Moskovski Capital.
22,550 #Bitcoin withdrawn from exchanges yesterday on aggregate.
This is the biggest net-outflow of the year. pic.twitter.com/dP8KXL32qA
— Lex Moskovski (@mskvsk) June 8, 2021
According to the expert, this is the largest net outflow of capital from Bitcoin exchanges in 2021. At the time of writing, the withdrawn coins were worth approximately $711.5 million.
Asset outflows from trading platforms often precede a rally in the cryptocurrency. For example, in December 2020, investors moved 270,000 BTC to non-custodial wallets — in that month, the price of Bitcoin rose by nearly 47%.
According to Glassnode data, May 2021 saw a substantial inflow of funds to exchanges. Over the month, the price of the leading cryptocurrency fell by almost 36%, at one point dropping below $35,000.
Meanwhile, long-term Bitcoin holders continued to increase positions. During May they bought 199,492 BTC more than they sold.
Moskovski added that news about using digital gold as a legal form of money could turn the market toward a bullish direction.
Bitcoin as legal tender is a powerful narrative.
Enough to counter any bearish sentiments.
Watching it closely.
— Lex Moskovski (@mskvsk) June 8, 2021
Earlier this week, Salvadoran President Nayib Bukele announced that the government would introduce a bill that would make the first cryptocurrency a legal form of money in the country.
Analyst and Bitcoin Magazine author Jan Wuestenfeld noted that the investment director could be mistaken. In his view, the cryptocurrency exchange Kraken is likely moving assets to a new wallet — a similar movement of funds had been observed on Sunday.
It is same as on Sunday most likely just Kraken moving coins to a new wallet.https://t.co/3QtuXOJ1NG
— Jan Wuestenfeld (@JanWues) June 8, 2021
Earlier ForkLog noted that whales took advantage of the market correction to build positions. The number of Bitcoin addresses with balances between 100 BTC and 10,000 BTC has grown for two and a half weeks, and large Ethereum holders are not selling their assets.
Recall that in February, amid the price drop on Coinbase, they withdrew almost 25,800 BTC in two tranches. Some analysts believed these were purchases of digital gold by large players during the decline, conducted on the over-the-counter market.
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