Big Players Pull $1.4B Bitcoin and Ethereum from Crypto Exchanges, Reports IntoTheBlock

IntoTheBlock, a prominent analytics firm, has recently released a report highlighting a substantial shift in the crypto landscape.

According to their findings, a staggering amount of over one billion dollars’ worth of Bitcoin (BTC) and Ethereum (ETH) has been withdrawn from crypto exchanges. This sudden surge in exchange net outflows, amounting to a total of $1.4 billion, coincides with a renewed surge in buying activity.

Exchange netflows, a key metric used to measure the total flow of assets into and out of exchanges, clearly demonstrate this trend. IntoTheBlock’s report identifies BlackRock’s recent filing for a spot Bitcoin exchange-traded fund (ETF) as a significant contributing factor to the spike in net outflows. This move by the asset management giant seems to have reignited the interest of major players, prompting their re-entry into the crypto markets.

By examining the on-chain data, IntoTheBlock’s analysis reveals the return of large players, drawn by the prospects of a Bitcoin spot ETF and the increasing participation of traditional finance (TradFi) in the digital asset space. Transactions exceeding the one-million-dollar mark have reached a yearly high, indicating a surge in whale activity during the past week.

Furthermore, the report highlights the heavy accumulation mode of crypto whales, referring to entities that control at least 0.1% of Bitcoin’s total supply. These influential holders have been observed amassing significant amounts of Bitcoin. In fact, the amount of Bitcoin being added to addresses owning 0.1% or more of the total supply has reached its highest level in 2023.

Interestingly, the data suggests that the accumulating entities are not associated with centralized exchanges (CEX) due to their negative netflows. This stark contrast with the highly positive netflows of large holders further confirms that the accumulation activity is unrelated to exchange-related transactions.

In summary, IntoTheBlock’s report unveils the considerable withdrawal of Bitcoin and Ethereum from crypto exchanges, highlighting the re-entry of major players into the market. This resurgence in buying activity is believed to be fueled by BlackRock’s interest in a Bitcoin ETF and the growing involvement of traditional finance. The data also points to increased accumulation by influential holders, signaling a potentially significant shift in the crypto landscape.

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Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial or investment advice. Cryptocurrency investments are subject to market risks, and individuals should seek professional advice before making any investment decisions.

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