U.Today – On-chain data has brought to light an intriguing development in the market. Over the past 48 hours, a whopping 40,000 BTC has left cryptocurrency exchanges. The timing of this significant outflow coincides with a period of lackluster Bitcoin price activity, indicating that major market players could be viewing current price levels as a buying opportunity.
At the time of writing, BTC is up 1.11% over the past 24 hours to $59,478, after hitting highs of $61,194 in yesterday's session. Bitcoin remains down 2.24% on the week.
According to cryptocurrency analyst Ali, it appears that some major players have taken advantage of the recent Bitcoin price drop. Ali noted that Santiment’s on-chain data reveals a 40,000 BTC drop in the exchange’s supply over the past 48 hours, equivalent to around $2.4 billion.
This move coincides with a notable increase in foreign exchange outflows, which could suggest either buying or moving into cold storage assets. The latter is often seen as bullish, as it suggests that investors are holding on to their assets rather than trying to sell them in the short term.
As reported, Santiment has detected an increase in the accumulation of wallets holding 10-10,000 BTC since last month. This class of Bitcoin holders has collectively accumulated 133,300 more coins, according to Santiment, while smaller traders continue to impatiently deposit their holdings there.
Bitcoin reserves on exchanges are falling
Since the beginning of the year, there has been a noticeable decrease in Bitcoin reserves on exchanges, as investors prefer self-custody.
Bitcoin's outflow to cold wallets typically indicates that investors are more interested in holding the crypto asset for a longer period, in hopes of future price appreciation.
As CryptoQuant points out, Bitcoin reserves on exchanges have fallen to yearly lows, which has implications for the Bitcoin market.
With less Bitcoin available on exchanges, selling pressure decreases, a trend that could potentially favor a bull market if demand also continues to grow.
This article was originally published on U.Today
