Bitcoin [BTC] has performed exceptionally well this week. What previously appeared to be a case of a “dead cat bounce” pattern, the world’s largest cryptocurrency has once again sent the market into a frenzy. The market saw substantial gains that pulled the coin back up to $40K. As the confidence among investors grew, a fresh sign of accumulation was noted by the on-chain analytic platform Intotheblock.
As per its data, the leading crypto exchange, Binance witnessed the largest Bitcoin withdrawal from this platform in the last three months. Over 13.8K BTC was withdrawn from the centralized exchange after the crypto-asset touched $40K on the 27th of July. Last time, this amount of BTC was withdrawn on the 19th of April when the price stood at $56K. ITB mentioned that negative exchanges Net Flow typically signals an accumulating trend, as market players seek to transfer their assets to cold storage wallets or yield services.
Binance Tightening KYC
Another reason as pointed out by a community member was Binance’s plans to beef up KYC provisions. The exchange had revealed its intention of strengthening withdrawal limits and launching a new tax reporting instrument as it faces a flurry of government investigations as well as bad publicity. However, this doesn’t seem to be the case, as Bitcoin outflows were only been limited to Binance. As a matter of fact, several prominent exchanges observed significant outflows during the same time frame.
Charles Edwards, who happens to be the Founder of Capriole Investments, revealed the same in his latest tweet while attaching a chart by CryptoQuant. His tweet read,
“Massive exchange outflows across multiple exchanges. BTC reserves on exchanges now sitting near 2021 lows.”
Bitcoin Sees Third Straight Week of Massive Outflows
CoinShares had recently revealed that crypto investment products and funds have been recording massive outflows for a third straight week. Bitcoin, undoubtedly, outshines the rest of the market as it saw a third straight outflow. The official numbers for the crypto outflows currently stood more than $27 million for the week that ended on the 23rd of July. A massive portion of this was derived from Bitcoin outflows which amounted to $24 million. James Butterfill, investment strategist, at CoinShares stated,
“Last week’s outflows suggest negative sentiment still pervades the asset class despite more recent constructive comments from key industry players.”