The cryptocurrency market experienced a notable resurgence following Easter Sunday, with Bitcoin at the forefront, achieving gains exceeding double digits. As the price of BTC remains above the pivotal $94,000 threshold, the leading cryptocurrency appears to be experiencing a decline in momentum. It is not unexpected that investors are showing growing confidence in the potential of this recent rally, as substantial quantities of BTC have been observed moving off major centralized exchanges in recent days. Here’s the extent of the movements made by investors in recent days.
More than 35,000 BTC have been transferred from Coinbase and Binance. In a Quicktake post on the CryptoQuant platform, crypto analyst João Wedson disclosed that Binance, the largest cryptocurrency exchange globally by trading volume, has experienced heightened activity in recent days. Recent exchange netflow data indicates that substantial quantities of Bitcoin have been withdrawn from the platform.
Data from CryptoQuant indicates that on Friday, April 25, a total of 27,750 BTC, valued at $2.63 billion at the current price, was transferred out of Binance. This recent wave of withdrawals marks the third-largest net outflow recorded in the history of the centralized exchange. The transfer of substantial cryptocurrency sums from exchanges that provide services such as selling to non-custodial wallets indicates a possible change in investor sentiment and strategy. Significant outflows from exchanges frequently indicate a heightened confidence among holders regarding the long-term prospects of an asset.
Wedson observed that the recent outflows do not assure a price rally for Bitcoin; however, they indicate robust institutional activity, which frequently serves as a precursor to significant volatility. Citing China’s crypto ban in 2021, the crypto analyst emphasized that substantial exchange outflows failed to avert the market decline. Concurrently, Wedson noted that the persistent Bitcoin outflows spanning multiple days, reminiscent of the FTX collapse, foreshadowed a price bottom and the subsequent market recovery. Ultimately, the online commentator suggested that one should focus on the broader trend of the exchange netflow instead of fixating on daily fluctuations.
In a similar vein, over 7,000 BTC (valued at around $66.5 million) have exited the Coinbase exchange. As noted by CryptoQuant analyst Amr Taha, the observed negative exchange netflow may signal a rise in institutional engagement, given that Coinbase serves as the leading cryptocurrency platform for institutions located in the United States. Such significant outflows generally indicate accumulation by institutions or large investors, which may point to a bullish sentiment. The analyst indicated that should the declining exchange reserves align with a rise in spot demand or ETF inflows, a supply squeeze may be imminent, which could drive the price higher.
At present, the price of BTC is positioned just below $95,200, indicating an approximate 2% rise over the last 24 hours.