Bitcoin (BTC) is in the green for the seventh consecutive day this week. With a current increase of a few percent, the price is climbing towards $40,000. At the same time, there is a strong exodus of Bitcoins to centralized exchanges, indicating growing investor confidence.
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More than 37,000 BTC are leaving exchanges
Data from Glassnode shows that just over 37,000 BTC have been added since November 17th flowed away of all crypto exchanges. This significant outflow represents more than $1.4 billion at the current Bitcoin price.
The most obvious reason investors withdraw their Bitcoins from exchanges is to hold them for the long term. The majority of Bitcoin outflow will go there Self-custody Wallets where investors have full control over their assets and therefore do not have to worry about third-party risks.
With the Bitcoin price now in an upward trend and investors looking forward to possible catalysts such as the Bitcoin halving, a possible Bitcoin exchange fund and possible interest rate cuts, more and more people are willing to store their Bitcoins in their own wallets for a long time.
Fewer Bitcoins available on exchanges means less potential supply to sell on the market. This can reduce selling pressure and positively influence price dynamics.
Bitcoin price breaks $38,000
Bitcoin’s momentum also strengthened today thanks to a surge above $38,000. Earlier today, the Bitcoin price reached a new annual high of just over $38,800. At the time of writing, the price is slightly lower again at around $38,300.
The large outflow of Bitcoins is a positive sign that indicates growing confidence in the market. For now, this is reflected in a further increase in the BTC price, but of course the connection is not so black and white.
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