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Colossal $2.53 Billion Bitcoin Withdrawal Stuns Major Exchanges

Published 05/31/2024, 11:19 PM
Updated 06/01/2024, 02:45 AM
© Reuters Colossal $2.53 Billion Bitcoin Withdrawal Stuns Major Exchanges
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U.Today - In the past 72 hours, about 37,000 Bitcoin (BTC), worth about $2.53 billion, have been taken out of cryptocurrency exchanges, as reported by Ali Martinez. This big move happened as Bitcoin’s price dropped by over 6.5%, going from $71,979 to $67,128 in the same period.

A lot of these withdrawals were from Kraken, a major centralized exchange based in the United States. Interestingly, Kraken allows the facilitation of many transactions in Tether (USDT) and Bitcoin, both directly and through over-the-counter (OTC) trades. This specification may suggest that large investors, or whales, are moving their assets, likely to various exchange pools or for potential use in ETFs.

This activity comes as the U.S. SEC has advised potential issuers of spot Ethereum ETFs to submit their amended Forms S-1 by today. The regulator will start its review process, which could lead to further amendments and possibly the approval of these financial products.

The large withdrawals and the SEC’s recent actions are seen as positive indicators for the market. When big money move Bitcoin off of exchanges, it often means they are choosing to hold their assets for the long term, which shows they have confidence in the cryptocurrency's value.

Also, the potential introduction of spot Ethereum ETFs soon could attract more institutional investors, which would make the market more legitimate and appealing.

While there is still some uncertainty, the overall outlook is optimistic. These significant Bitcoin withdrawals, combined with regulatory progress, suggest a strengthening market environment for cryptocurrencies.

This content was originally published on U.Today

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