Bitcoin witnessed a surge in daily withdrawals of $265.6 million worth of BTC from centralized exchanges with a net flow of a negative $43.1 million.
Data from Glassnode showed that there has been a steady stream of investors pulling out BTC to the decentralized exchanges. Compared to that, the second-biggest cryptocurrency has hit a daily net flow of +$1.8 million while the leading stablecoin Tether’s 24-hour net flow reached +$57.5 million.
It can’t be said for certain whether the removal of Bitcoin from exchanges signals the end of the FTX crisis or the beginning of the bullish movement in the cryptocurrency market.
The crypto market was rocked by the unprecedented fallout of the FTX empire built by SBF. A sizeable portion of the world’s trading volume was made up by the defunct exchange, which prevented Binance from taking over as the market’s de facto leader.
However, focusing solely on Binance’s trading volume does not give a clear picture of the exchange’s situation.
In order to gauge the mood of the market, one needs to study the dominant crypto Bitcoin first. The impetus behind the cryptocurrency sector, the movement of Bitcoin, and its dispersion among exchanges reveal the mood of the market and can be used to forecast future developments, as per analysts.
Bitcoin’s Massive Outflows Could Spur Selling Pressure?
The quantity of BTC that could be utilized to create selling pressure is visible by looking at Bitcoin balances on exchanges. It also demonstrates the market’s overall maturity and health, as more people view Bitcoin as a long-term investment the less there is of it available on exchanges.
The total quantity of Bitcoins stored on Binance as of December 23 is 565,00. From the annual high of 655,000 BTC reached in December, when more than $1 billion worth of BTC was transferred into the exchange, this is a dramatic decline.
In one week in mid-December, Binance’s balance increased by 90,000 BTC. Over $600 million in BTC was taken out of the exchange in a single day.
The retail market was in charge of the majority of the withdrawals in December, according to an analysis of the net flow of Bitcoin divided by the transaction value.
The declining Bitcoin balance is a market-wide trend, as can be seen by contrasting Binance to other exchanges. However, this month, only Binance saw a significant decline in its BTC balance, with minor declines also occurring on Coinbase, Kraken, Gemini, and Bitfinex.