Bitcoin Exchange Exodus Continues As ‘Hodler’ Supply Hits ATH
Crypto investors still move Bitcoin from exchanges, but not necessarily to sell it. The amount of BTC held off-exchange is now at its highest level ever, suggesting long-term confidence in the asset.
The great crypto exodus from Binance has slowed, but Bitcoin is still leaving centralized exchanges. More than $5 billion left Binance on December 13 as investors began to panic over 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 dollars in Bitcoin have left exchanges in the last 24 hours, according to Glassnode.
Still, the net outflow of BTC from exchanges has slowed to just $641 million.
Keep on keeping on
Barring the scary scenario of a ban, Bitcoin leaving exchanges is generally seen as bullish. It usually occurs when investors prepare to hold 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 spectacular losses, the age of the coin supply and the propensity for HODLing of those remaining continue 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 stage down to 2022, there had been increased periods of redistribution and re-accumulation of coins.
Much of BTC was acquired between $18,000 and $24,000, and this supply is now aging into a long-term bracket held over six months.
Leverage flush-out has occurred and the weak hands have sold their holdings. Only those who are convinced of a long-term recovery have remained and continue to accumulate the asset at current prices.
Bitcoin Price Outlook
Bitcoin continues to consolidate as it has since the FTX meltdown. However, it has hit its highest price in just over a month after rising 3.5% on the day.
As a result, BTC was trading at $17,781 at press time and has recovered 13.5% since the November 22 bear cycle.
However, the bears are not out of the woods yet. Bitcoin is still down 74.3% from its all-time high, but investors are now in accumulation mode.
Disclaimer
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