On Wednesday, centralized cryptocurrency exchanges witnessed a significant outflow of Bitcoin (BTC), with more than 17,000 BTC, valued at over $1.6 billion, being withdrawn.
According to CoinDesk, this movement marks the largest single-day withdrawal of BTC since April 2024. The data, provided by Glassnode and shared by Andrew Dragosch, head of research at Bitwise, indicates a potential bullish sentiment among investors, as large-scale withdrawals often suggest a preference for long-term holding.
Coinbase (NASDAQ:COIN), one of the leading cryptocurrency exchanges, accounted for a substantial portion of these outflows, processing net withdrawals exceeding 15,000 BTC. Further analysis by Timechainindex.com revealed that Coinbase had redistributed over 20,000 BTC from four addresses into 60 different addresses on the same day. This activity could signal significant purchases by entities such as ETFs or MicroStrategy within the week.
The broader crypto market reflected this trend, with CryptoQuant’s on-chain data showing that all exchanges combined had a negative net flow of 47,000 BTC on Wednesday. Of this total, Coinbase was responsible for 15.8K BTC.
The market’s response to these movements was initially negative, with Bitcoin’s price dipping below $96,800 during Wednesday’s late U.S. trading hours. However, the market sentiment shifted earlier today following news that Eric Trump, son of President Donald Trump, encouraged World Liberty Financial, a crypto platform with ties to the Trump family, to make its inaugural investment in Bitcoin. This endorsement appeared to contribute to a rebound in Bitcoin’s value.
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