According to on-chain analytics firm IntoTheBlock, Bitcoin just recorded its largest net outflow from exchanges in six months. It notes that over 70,000 BTC worth $1.52B left exchanges in a single day — that is, Oct. 26.
#Bitcoin just recorded its largest net outflow from exchanges in 6 months
Over 70k $BTC worth $1.52B left exchanges on October 26 👀 pic.twitter.com/WN3awvGPeE
— IntoTheBlock (@intotheblock) October 28, 2022
The reserves held on exchanges have likewise kept going downhill nonstop, reaching multi-year lows throughout October and bouncing back to levels from January 2018. In essence, all coin volumes that entered exchanges since the peak of the last cycle have now been withdrawn into a nonexchange-related wallet.
According to Glassnode, over 123,500 BTC were taken out in the first three weeks of October alone, or 0.86% of the total supply. Even while exchange reserves are not a signal in and of themselves, in the context of bearish market conditions, it offers a positive backdrop.
Most wallet cohorts showed a noticeable shift in their behavior toward balance changes in October. Small BTC holders (<1 BTC) and likewise whales (up to 10K BTC) have shifted away from a net balance distribution and reduction and toward a net balance accumulation and increase.
Prices have stayed stable and have had little volatility, which points to a propensity for patient accumulation around range lows. Given that prices have remained flat and of low volatility, this suggests a tendency toward patient accumulation at range lows.
Bitcoin building base at $20K
Following an unexpectedly positive GDP report in the U.S. that failed to dissuade investors from underlying worries about inflation and a potentially deep recession, cryptocurrency markets halted their two-day advance.
In contrast to predictions for 2.4% growth, the third quarter of the U.S. economy had a 2.6% expansion. In contrast to the 1.6% and 0.6% contractions in the first and second quarters, the economy seems to be expanding. BTC declined to touch lows of $20,034 before slightly rebounding to around $20,134, where it trades presently.