Despite the current price drop below the $40K level this week, large Bitcoin owners have continued to accumulation and holding of the asset.
In the past few days alone, nearly 26K bitcoins were moved out of crypto exchanges, says crypto data analysis firm Santiment. This is the largest number of bitcoins transferred to private wallets in the prior five weeks.
According to Santiment, large quantities of Bitcoins being withdrawn from trading platforms typically leads to price surges.
25,878 #Bitcoin were moved off of exchanges in the past 24 hours, the largest difference between outflow & inflow in 5 weeks. Historically, large quantities of $BTC moving off exchanges leads to price rises given a few days for the pattern to hold. https://t.co/wZ4Q8LZsxn pic.twitter.com/UCWp7G5WuZ— Santiment (@santimentfeed) April 14, 2022
As seen from Santiment’s data, Bitcoin’s price rose by approximately 25% the two previous times this year that massive Bitcoin outflows from exchanges were witnessed.
Data from crypto analysis firm Glassnode further reinforces the insights from Santiment regarding subsequent positive market sentiment.
As Glassnode’s co-founders reported, Bitcoin’s has adoption increased and new Bitcoin participants are regularly entering the market. Furthermore, the Bitcoin market is accordingly growing at a faster rate than investors are selling or taking in profits.
#Bitcoin 's adoption is growing + exchange signups show new participants entering the market.#BTC 's market is growing at a faster rate than investors are selling or taking profits. See for yourself https://t.co/3CIPmzPbad pic.twitter.com/zHnQ3aoPwk—