Bitcoin has broken above the $30,000 mark as on-chain data shows whales have been making some large outflows during the past day.
Bitcoin Whales Have Made Large Exchange Outflows Today
According to data from the on-chain analytics firm Santiment, 11 large BTC outflows were made from exchanges today. The relevant indicator here is the “exchange flow balance,” which measures the net amount of Bitcoin entering or exiting the wallets of all centralized exchanges.
When the value of this metric is positive, it means a net number of coins is being transferred into these platforms right now. As one of the main reasons why investors may use exchanges is for selling purposes, this kind of trend can have bearish implications for the price.
On the other hand, negative values of the indicator suggest holders are withdrawing some amount of the cryptocurrency from exchanges currently. Such a trend may be a sign of accumulation from investors.
Now, here is a chart that shows the trend in the Bitcoin exchange flow balance over the last day or so:
Looks like the metric has seen some highly negative values recently | Source: Santiment on Twitter
As shown in the above graph, the Bitcoin exchange flow balance has observed large negative spikes during the past day. The largest of these spikes came from eight transactions of 2,000 BTC each that took place simultaneously.
Another three simultaneous transfers of 2,000 BTC each took place an hour after this eight-transaction batch. This means that in total, 22,000 BTC (worth about $661 million currently) exited exchanges with these outflows.
These sudden extremely large outflows may be a sign of heavy buying from the whales. Also, the timing may suggest that this buying pressure could be what’s driving the sharp bullish movement that the cryptocurrency has seen today, in which it has now broken above the $30,000 mark for the first time since June 2022.
Data of the Bitcoin trading volume also shows elevated levels, which may suggest that this price move could be sustainable for now.
The indicator has sharply surged during the past day | Source: Santiment
The above chart also displays the data for the “active addresses,” a metric that measures the daily amount of unique addresses that are taking part in some transaction activity on the Bitcoin blockchain.
It looks like this metric hasn’t shown any significant spikes during the past day, despite the sharp surge in the price. This may be further evidence that the spike in the price is driven by the large moves that a small number of whales have made today.
High participation from the average investor has historically accompanied long-term price moves, so while the trading volume may be enough to fuel the surge for now, it’s uncertain whether the move can keep up if the active addresses continue to stay low.
At the time of writing, Bitcoin is trading around $30,000, up 6% in the last week.
BTC has shot up over the last few hours | Source: BTCUSD on TradingView
Featured image from Thomas Lipke on Unsplash.com, charts from TradingView.com, Santiment.net