“Bitcoin’s remarkable surge in price triggers a consequential shift as crypto exchanges witness a significant outflow of assets, indicating a growing trend of investors eagerly seeking to join the digital currency revolution.”
Major crypto exchanges saw a net outflow of funds on October 24 as the price of Bitcoin reached $35,000 for the first time in a year. This movement of assets away from exchanges is seen as a positive sign, indicating that traders are securing their assets in anticipation of price increases.
According to data from CoinGlass, Binance had the largest outflow with over $500 million, followed by crypto.com with $49.4 million and OKX with $31 million. Other exchanges recorded smaller outflows.
These outflows are not causing fears of a “bank run” like those seen after the FTX collapse in 2022. Instead, they reflect trader sentiment during this bullish market. Data from Glassnode confirms that the outflows from Bitcoin exchanges have risen along with the price surge.
The price surge also led to the liquidation of approximately $400 million worth of short positions, with 94,755 traders experiencing liquidation. The largest liquidation order occurred on Binance, totaling $9.98 million.
On-chain analysts are also looking at the market value to realized value (MVRV) ratio, which compares a cryptocurrency’s market value to its realized value. The current MVRV ratio is 1.47, and during the last bull run, it reached 1.5.
The total crypto market cap has increased by 7.3% in the past 24 hours, reaching $1.25 trillion, its highest valuation since April. The surge is believed to be driven by speculation surrounding the launch of a spot Bitcoin exchange-traded fund.
Overall, these developments indicate a positive outlook for Bitcoin and the broader crypto market as traders secure their assets and prices continue to rise.