Bitcoin Exchanges Witness Record Outflows Amid Price Surge

Bitcoin is experiencing a trend in the cryptocurrency market, characterized by an increase in leaving exchanges, reaching levels not seen in years.

With BTC price movement vying for all-time highs, more and more Bitcoin is departing exchanges at a rate not seen in years.

A research and data researcher at crypto insights firm CryptoSlate, James Van Straten, highlighted withdrawals of Bitcoin worth billions dollars in a post he made on X on March 3.

Cryptocurrency withdrawals in 2021

Bitcoin exchanges are quietly draining their reserves of BTC, even if mainstream investors have not yet returned to crypto.

According to statistics uploaded by Van Straten from the on-chain analytics company Glassnode, the amount of money withdrawn was close to $2 billion on March 1st alone.

“I think I’ve never seen anything quite like this before,” he remarked.

“All in all on the Friday, just over $2.3B worth of Bitcoin left exchanges. One of the biggest withdrawals in over 5 years.”

It seems that Glassnode is recording daily BTC outflows that are almost equivalent to the aggregate record withdrawals saw on June 28-29, 2021.

Leaving out the roughly $200 million sent to custodian Coinbase Pro, Van Straten pointed out the function of US spot Bitcoin ETFs.

“Binance has witnessed significant outflows of funds over the past few days, amounting to approximately $400 million,” he mentioned further.

“Coinbase saw the rest. Binance outflows are the interesting ones because they have nothing to do with the ETF.”

There were 2,286,347 BTC ($142.5 billion) available on the main trading platform that Glassnode monitors as of March 2, according to the company.

Since March 2018, when the Bitcoin/USD exchange rate was barely $8,000, this is the lowest sum.

An influx of new Bitcoin investors

At the same time, newly participating entities are being shown by distinct numbers that track the makeup of the Bitcoin market.

Crypto Dan, a developer to the on-chain analytics tool CrryptoQuant, recently updated the Quicktake market with an analysis of the ages of unspent transaction output (UTXO).

“Younger” coins are more prevalent, but “older” ones that have been dormant for at least six months are reawakening.

“People are starting to put their money into the market, and we should anticipate a flood of new ‘individual’ investors very soon,” he said in summary.

“Eventually, this ratio will continue to decline sharply, leading to the ‘true bull market’ we desire.”