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Massive Bitcoin (BTC) Exit From Exchanges May Spell Good Omen, Here's Reason

Published 08/15/2023, 07:15 AM
Updated 08/15/2023, 07:30 AM
© Reuters.  Massive Bitcoin (BTC) Exit From Exchanges May Spell Good Omen, Here's Reason
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U.Today - Bitcoin (BTC) has been on everyone's radar over the past week as its price is trading in a very of $29,245 and $30,030 in the past week. The premier asset has been relatively stagnant since the potential approval of Ark Invest's spot Bitcoin ETF product was by the U.S. SEC last week. In what appears as a subtle response, Bitcoin whales now appear to be their funds away from trading platforms, a move that has intensified in the past 24 hours.

Data from Santiment, as shared by renowned on-chain analyst @Ali_Charts, shows that a total of 11,000 BTC have been withdrawn from crypto trading wallets in the past 24 hours. The sum is worth a total of $330 million, and this move serves as a very good omen for Bitcoin's impending bullish run.

The theories backing this bullish run are that whales are no longer mulling a selloff of BTC, and the withdrawal might be targeted at safe custody on hot wallets. While it is hard to note the exact purpose of on-chain transactions, the withdrawals are helping to limit the total BTC supply on secondary marketplaces, lending a positive undertone to the coin's potential price upshoot.

Growing Bitcoin fundamentals

One crucial fundamental surrounding Bitcoin (BTC) today is its correlation with U.S. equities and investment-grade bonds thus far this month.

As earlier by U.Today, The correlation between U.S. equities and the iShares Core U.S. Aggregate Bond ETF (AGG) stood at 40% and 33%, respectively, for the month of August, according to data that comes from data analytics firm Kaiko.

Ahead of the anticipated of a spot Bitcoin ETF, BTC bulls can take solace in this correlation in that it largely legitimizes the coin as a viable investment asset.

This article was originally published on U.Today

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