U.Today – On-chain data has revealed an intriguing market development. A whopping 40,000 BTC have exited cryptocurrency exchanges in the past 48 hours. The timing of this significant outflow coincides with a period of faint price activity for Bitcoin, indicating that major market players may be viewing current price levels as a buying opportunity.
At the time of writing, BTC is down 1.11% in the past 24 hours to $59,478, after reaching a peak of $61,194 during yesterday’s trading 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 decline in bitcoin prices. Ali noted that on-chain data from Santiment reveals a 40,000 BTC drop in the exchange’s supply in the past 48 hours, which equates to about $2.4 billion.
The move is consistent with a significant escalate in stock market outflows, which could suggest buying or a move to chilly storage. The latter is often seen as bullish because it suggests investors are holding onto their assets rather than looking to sell them in the near term.
As reported, Santiment has seen an escalate in accumulation in wallets of 10-10,000 BTC since last month. This class of Bitcoin holders has collectively amassed 133,300 more coins, according to Santiment, while smaller traders continue to eagerly dump their holdings there.
Bitcoin reserves on exchanges are falling
Since the beginning of the year, there has been a noticeable decline in bitcoin reserves on exchanges as investors prefer to store the money themselves.
The outflow of Bitcoin to chilly wallets usually indicates that investors are more interested in storing the cryptocurrency for a longer period of time, hoping for a future price escalate.
As CryptoQuant points out, bitcoin reserves on exchanges have fallen to a yearly low, which is having an impact on the bitcoin market.
As the number of bitcoins available on exchanges decreases, selling pressure is decreasing — a trend that could potentially support growth in the market if demand continues to grow.
