Amid a turbulent global landscape and unpredictable financial market, Bitcoin exchanges are now experiencing significant capital outflows.
Crypto analyst Ali Martinez highlighted the development on Wednesday, tweeting that nearly 33,000 Bitcoins, worth around $924 million, have been withdrawn from known cryptocurrency exchange wallets over the past five recent days, according to data from Cryptoquant.
Analysts have suggested that this move toward cold storage indicates that long-term holders are betting on a bullish future for Bitcoin. Large outflows have reduced the liquid supply of Bitcoin on exchanges, which could, in turn, push the price higher.
Conversely, yesterday, October 18, OKX Exchange recorded its largest Bitcoin inflow in almost three years, with approximately 8,000 Bitcoins valued at approximately $224 million. OKX is at a year-to-date high, holding around 143,000 Bitcoins, a level not seen since January 2021. The volatility of OKX’s flow highlights the unpredictable nature of Bitcoin trading and the contrasting strategies adopted by exchanges. -individual forms in a context of current market instability.
That said, some experts have argued that these contrasting observations are reminiscent of conditions seen in November 2020, when the previous rally began.
Meanwhile, analysts have been rather optimistic in their forecasts. They speculate that the potential approval of a Bitcoin spot ETF by the Securities and Exchange Commission (SEC) could come sooner than expected. Notably, a report published Wednesday by Law360 said the SEC’s choice not to challenge the reversal of its rejection of Grayscale Investments’ Bitcoin exchange-traded fund proposal indicates a high likelihood that the agency is preparing for the approval of several ETFs involving Bitcoin.
That said, approval of the ETF should deeply impact the cryptocurrency market. According to a report by CryptoQuant, the approval of a Bitcoin ETF could inject around $1 trillion into the cryptocurrency market capitalization, which could push the price of the cryptocurrency to $73,000.
In light of these developments, Bitcoin has remained strong, maintaining its position above the psychological support of $28,000. The cryptocurrency was trading at $28,788 at press time, reflecting a 2% increase over the past 24 hours. Over the past week, BTC has surged just over 7%.