Major crypto exchanges recorded a net outflow on October 24 as the price of bitcoin (btc) briefly touched the $35,000 mark for the first time in a year. The movement of funds off exchanges is considered a bullish signal as it indicates that traders are moving their assets away from exchanges into safe storage, waiting for prices to rise.
According to data shared by crypto analytics firm CoinGlass, Binance experienced the largest outflow, with more than $500 million leaving the exchange in the last 24 hours, followed by crypto.com with $49.4 million in outflows and OKX with 31 million dollars. Most other exchanges recorded less than $20 million in outflows.
Fund outflows from crypto platforms have recently sparked “bank run” fears following the FTX collapse in November 2022. However, the most recent outflows align more with trader sentiment than fear-induced withdrawals. during the peak of the bear market. Data from Glassnode confirms that bitcoin outflows from exchanges in recent days have increased in line with the rise in btc price.
Related: btc price nears 2023 highs: 5 things to know about bitcoin this week
The price increase also caused the settlement of approximately $400 million in short positions. In the last 24 hours, 94,755 traders saw their derivatives positions liquidated. The largest liquidation order occurred on Binance, worth $9.98 million.
On-chain analysts also pointed out the market value to realized value (MVRV) ratio, a metric that compares the asset’s market value to its realized value. It is calculated by dividing the market capitalization of a cryptocurrency by its realized capitalization. The realized price is determined by the average price at which each coin or token last moved on the chain. The MVRV ratio currently stands at 1.47. The last time there was a bull run, the MVRV ratio was 1.5.
bitcoin?src=hash&ref_src=twsrc%5Etfw”>#bitcoin reach $35,000. Portfolio profits reached 79.72%.
The bull market begins when the MV ratio remains above 1.5.
Now we are at 1.47. I am positive about bitcoin?src=hash&ref_src=twsrc%5Etfw”>#bitcoin reaching $40,000 in the next few days, which will send the MV ratio to 1.6. pic.twitter.com/uCgdNLGRnq
– hitesh.eth (@hmalviya9) October 24, 2023
The total cryptocurrency market capitalization has increased more than 7.3% in the last 24 hours to $1.25 trillion, its highest valuation since April. The catalyst behind the rise is believed to be increased speculation over the launch of a spot bitcoin exchange-traded fund.
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