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On October 24, significant cryptocurrency exchanges experienced a net outflow as Bitcoin (BTC) briefly reached the $35,000 threshold for the first time in a year. The transfer of funds away from exchanges is interpreted as a bullish indicator, suggesting that traders are relocating their assets to secure storage in anticipation of rising prices.
Data provided by crypto analytics firm CoinGlass indicates that Binance experienced the largest outflow, with over $500 million exiting the exchange in the past 24 hours, followed by crypto.com with $49.4 million and OKX with $31 million. Most other exchanges reported outflows of less than $20 million.
Recent outflows from crypto platforms have sparked “bank run” concerns following the FTX collapse in November 2022. However, the latest outflows appear to be more reflective of trader sentiment rather than fear-driven withdrawals typical of a peak bear market. Glassnode data corroborates that Bitcoin outflows from exchanges in recent days have increased alongside BTC’s price rise.
Bitcoin exchange outflows. Source: Glassnode
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The price increase also resulted in the liquidation of approximately $400 million in short positions. In the last 24 hours, 94,755 traders experienced liquidations of their derivative positions, with the largest single liquidation order occurring on Binance, amounting to $9.98 million.
On-chain analysts have also highlighted the market value to realized value (MVRV) ratio, which compares the market value of an asset to its realized value. This ratio is calculated by dividing a cryptocurrency’s market capitalization by its realized capitalization. The realized price is determined by the average price at which each coin or token was last transacted on-chain. The current MVRV ratio stands at 1.47. The last bull run saw the MVRV ratio reach 1.5.
#Bitcoin reached $35K. Wallets in profit reached 79.72%.
The Bull Market commences when the MV Ratio remains above 1.5.
We are currently at 1.47. I am optimistic about #bitcoin reaching $40K in the coming days, which will elevate the MV ratio to 1.6. pic.twitter.com/uCgdNLGRnq— hitesh.eth (@hmalviya9) October 24, 2023
The total cryptocurrency market capitalization has increased by over 7.3% in the past 24 hours, reaching $1.25 trillion, its highest level since April. The surge is believed to be driven by ongoing speculation regarding the introduction of a spot Bitcoin exchange-traded fund.
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