Crypto investors are still moving their Bitcoin off exchanges, but not necessarily to sell it. The amount of BTC held off-exchange is now at its highest-ever level suggesting long-term confidence in the asset.
The big Binance crypto exodus has slowed down, but Bitcoin is still leaving centralized exchanges. More than $5 billion left Binance on Dec. 13 as investors started to panic about its ability to withstand a run.
The world’s largest crypto exchange by volume weathered the storm, as reported by BeInCrypto. However, coins continue to leave Binance and other exchanges. Around $1.4 billion in Bitcoin has left exchanges over the past 24 hours, according to Glassnode.
Nevertheless, the net outflow of BTC from exchanges has slowed to just $641 million.
Keep on Holding on
Aside from the scary ban-run scenario, Bitcoin leaving exchanges is generally viewed as bullish. It usually occurs when investors are preparing to hold on to the asset rather than sell it (which is when there are large inflows).
This appears to be exactly what is happening at the moment, according to analytics provider Glassnode. In its weekly on-chain report, the firm noted that the long-term holder supply had reached an all-time high of 13.9 million BTC. Regarding realized losses this year, it added:
“Despite these spectacularly large losses, the age of the coin supply, and propensity for HODLing by those who remain continues to rise.”
The amount of long-term Bitcoin holdings is equivalent to around 72.3% of the circulating supply.
The accumulation began in late July and did not stop even when FTX collapsed in early November. Glassnode noted that after each market leg down in 2022, there had been increased periods of coin re-distribution and re-accumulation.
A lot of BTC was acquired between $18,000 and $24,000, and this supply is now aging into a long-term bracket which is over six months held.
The leverage flush-out has occurred, and the weak hands have sold their holdings. Only those with the conviction of a longer-term recovery have remained and continue to accumulate the asset at current prices.
Bitcoin Price Outlook
Bitcoin is still consolidating as it has done since the FTX meltdown. However, it has reached its highest price in just over a month following a 3.5% gain on the day.
As a result, BTC was trading at $17,781 at the time of press and has recovered 13.5% since the bear cycle low on Nov. 22.
The bears are not out of the woods just yet, however. Bitcoin is still down 74.3% since its all-time high but investors are now in accumulation mode.
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