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Bitcoin withdrawals reach one of the highest levels of the year Bitcoin withdrawals reach one of the highest levels of the year

Bitcoin withdrawals reach one of the highest levels of the year

Data via Glassnode

The differential between Bitcoin withdrawals and deposits hits the largest margin this year

Quick Take

The current year has marked a significant shift in the Bitcoin exchange flow. A renewed momentum in Bitcoin withdrawals is evident, with over 61,000 BTC recently withdrawn, a substantial surge from the year-to-date low of nearly 43,000 BTC. This uptick suggests an increasing preference for investors to hold their Bitcoin assets off-exchange, possibly indicating a stronger long-term belief in the value of Bitcoin.

Concurrently, Bitcoin deposits into exchanges are on a consistent downtrend, even with a recent minor uptick to 50,000 BTC, suggesting lesser selling pressure in the market. The most striking is the gap between withdrawals and deposits, standing at a remarkable 10,000 BTC, marking it as the largest this year and the second-largest ever. This differential is only shadowed by the FTX collapse aftermath, which witnessed an overwhelming peak of over 80,000 BTC withdrawn.

These trends could suggest a shift in investor sentiment, with more investors seemingly opting to hold their assets long-term rather than seeking immediate liquidity on exchanges.

Exchange Transaction Dominance: (Source: Glassnode)
Exchange Transaction Dominance: (Source: Glassnode)

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