The leading cryptocurrency, BTC, experienced its most substantial outflow from centralized exchanges since 2022, with over 28,000 BTC valued at around $1.19 billion leaving trading platforms. This notable event, reported by the blockchain intelligence firm Glassnode, signifies a considerable shift towards adopting self-custody solutions and embracing long-term investment strategies.
Coinbase, the leading crypto exchange in America, saw an outflow of 18,000 BTC, valued at $774 million per data from CryptoQuant, underlining the firm’s role in this trend. Moreover, Coinbase has experienced withdrawals totaling over 31,400 BTC over the past month, as per CoinGlass figures. However, Binance, the largest global exchange, recorded the highest 24-hour BTC outflow, with more than 5,858 BTC leaving its platform.
These outflows indicate a declining trend in Bitcoin balances on centralized exchange wallets. These balances are at their lowest since April 2018, hovering around 2.3 million BTC. Consequently, this shift points towards a broader trend of investors opting for more control over their assets. Additionally, such movements often hint at underlying institutional activities, especially with an expected ETF launch looming in early January.
The crypto community is abuzz on social media platform X following a post by Coinbase CEO Brian Armstrong. Armstrong refuted the outflow data, claiming a significant discrepancy with Coinbase’s internal figures. This statement has sparked further discussions and speculations among market participants.
Ki Young Ju, the CEO of CryptoQuant, responded to Armstrong’s claim, seeking clarification with a simple, “Are you sure?” This exchange between industry leaders has added a layer of complexity to the narrative, leaving the crypto community eager for more insights and explanations.
Significantly, the crypto market is at a crossroads. With major outflows from centralized exchanges, investors are gearing up for long-term holding strategies. This trend could reshape the market dynamics, influencing short-term price movements and long-term investment patterns.
The discrepancy between external data and Coinbase’s internal records has ignited speculation about potential institutional activity. With an anticipated ETF launch in early January, market participants are keenly observing any signs of strategic moves by major players in the crypto space.
