The price of Bitcoin has resumed its dizzying rise, briefly touching the $35,000 mark, a milestone not seen in a year. But what makes this news even more intriguing is the steady flow of assets moving away from crypto exchanges.
This phenomenon is commonly interpreted as a bullish signal, indicating that investors are moving their assets to safer locations, away from exchanges, in anticipation of a continued rise in prices.
This exodus is not limited exclusively to Bitcoin. Several other digital assets have also seen notable exits from exchanges, a phenomenon that reflects overall investor confidence in the cryptocurrency market.
According to data provided by CoinGlass, Binance leads the way in terms of outflows, with more than $500 million leaving the exchange in the last 24 hours.
In its wake, crypto.com recorded $49.4 million in outflows, closely followed by OKX with $31 million. Other exchanges also experienced outflows, although to a lesser extent, with amounts below $20 million.
However, unlike past episodes, these exits are not driven by fear, like those that followed the FTX collapse in November 2022.
The largest short liquidation in Bitcoin so far this year
Instead, they reflect the general sentiment of investors, who, confident in the bull market of crypto in general seek to protect their assets in safer places.
The largest short liquidation so far this year.#Bitcoin Over $1B in Open Interest wiped out.
👉https://t.co/HknRjCxOgc pic.twitter.com/3xVfdnvceV
— CoinGlass (@coinglass_com) October 23, 2023
The increase in prices has also triggered the liquidation of approximately $400 million in short positions, with the largest liquidation order occurring on Binance, amounting to $9.98 million.
Analysts also highlight the market value to realized value ratio (MVRV), which currently stands at 1.47, a level very close to that seen during the last bull run, which reached 1.5.
The total value of the cryptocurrency market has seen an increase of 7.3% in the last 24 hours, reaching an impressive $1.25 trillion, its highest value since April. The reason behind this rally is largely attributed to speculation surrounding the imminent launch of a Bitcoin ETF’s.
This data suggests that investors are increasingly convinced of the resilience and growth potential of cryptocurrencies, leading them to look for safer ways to safeguard their assets, rather than simply selling.
