The bitcoin price is currently about 39% higher than at the beginning of the month. Bitcoin (BTC) entered the new year with a price of around $16,500. This makes January Bitcoin’s best-performing month since October 2021, when it ended the month up 41% in the green.
Bitcoin price nearly touched $24,000 on January 29, but took a significant plunge the following morning. At the time of writing, the price stands at $22,930. The explosive move up took place in the first half of the month, as the price has moved mostly sideways over the past week and a half.
It’s an exciting week for financial markets as the Federal Reserve begins its two-day policy meeting today. On Wednesday we will hear what the Fed decides with interest rates. The market (99%) currently expects interest rates to be increased by 0.25%.
BTC outflow on exchanges
After the demise of FTX, a record amount of BTC was taken off the crypto exchanges. This is about the ‘exchange net position change‘, which measures the net amount of BTC moving in or out of the wallets of centralized exchanges. A positive value means that investors have sent more bitcoin to the exchanges than they have withdrawn from it. Since the implosion of FTX, this indicator has been generally negative, meaning more bitcoin is being pulled off the exchanges.
At the moment, there are about 2.25 million BTC stored on trading platforms, according to a report from Glassnode. This represents 11.7% of the circulating supply and is at a low last seen in February 2018.
Glassnode added that the total amount of BTC flowing in and out of the exchanges is currently about $625 million per day in both directions. This shows that the exchange net position change has returned to equilibrium, due to a cooling of exchange outflows.