bitcoin has recently broken above the $59,000 level as whales have been making large withdrawals from the Bitfinex cryptocurrency exchange.
bitcoin whales have taken out $240 million in btc from Bitfinex
As analyst James Van Straten explained in a new post on
Below is the graph shared by the analyst showing the data of the volume of net transfers going to or leaving Bitfinex in recent years:
<img decoding="async" class="alignnone aligncenter" src="https://technicalterrence.com/wp-content/uploads/2024/02/Bitcoin-Surpasses-59000-as-Smart-Money-Buys-on-Bitfinex.jpeg" alt="bitcoin Bitfinex Outflows” width=”1800″ height=”1013″/>
Looks like the value of the metric has been negative in recent days | Source: @jvs_btc on X
As shown in the chart above, the net flow volume for the exchange has been negative recently, implying that outflows have overwhelmed inflows.
Generally, investors make deposits on exchanges whenever they want to use one of the services offered by the platform, which may include selling. For this reason, large currency inflows may be something to watch out for, as they may indicate that selling is occurring.
On the other hand, holders often withdraw their coins from the custody of these platforms when they plan to hold them for long periods of time. Departures may even correspond to new purchases, as some buyers prefer to immediately move into cold storage once they have made their purchase.
Whatever the case, a net amount of volume coming out of exchanges is generally a positive sign. In the case of Bitfinex in particular, this trend may be especially bullish, as according to Straten, the whales on Bitfinex are “smart money.”
As such, it is not surprising that bitcoin price has skyrocketed above the $59,000 level as the latest large net outflows from Bitfinex whales occurred. In total, more than $240 million worth of cryptocurrencies have left the platform in this potential buying spree.
While the outlook on Bitfinex has been positive, the trend in the sector as a whole may not be as bright. As noted by an analyst at CryptoQuant Quicktake btc-to-Spot-Exhcange-Since-20k” target=”_blank” rel=”noopener nofollow”>mailbitcoin inflows heading to all spot exchanges have seen a huge surge recently.
<img loading="lazy" decoding="async" class="alignnone aligncenter" src="https://technicalterrence.com/wp-content/uploads/2024/02/Bitcoin-Surpasses-59000-as-Smart-Money-Buys-on-Bitfinex.png" alt="bitcoin exchange entries” width=”1280″ height=”563″ data-recalc-dims=”1″/>
The value of the metric seems to have been quite high recently | Source: btc-to-Spot-Exhcange-Since-20k" target="_blank" rel="noopener nofollow">CryptoQuant
Since these large inflows have occurred alongside the cryptocurrency's latest rally, they could be signs of profit taking. However, it is difficult to say if this means a top for the asset, given that smart money whales have been supporting the coin during this rally.
December also saw a large increase in capital inflows, but back then the deposits were going to derivatives platforms, meaning investors were only looking to open positions in derivatives.
This time, however, bitcoin inflows are headed to spot exchanges, which investors use to buy and sell.
btc Price
bitcoin has approached the $60,000 level in the last day after an increase of around 4%.
<img loading="lazy" decoding="async" class="alignnone size-medium aligncenter" src="https://www.tradingview.com/x/t264FNMQ/" alt="bitcoin price chart” width=”1534″ height=”854″/>
The price of the coin appears to have been rapidly going up recently | Source: BTCUSD on TradingView
Featured image from Shutterstock.com, CryptoQuant.com, Glassnode.com, Chart from TradingView.com
