Bitcoin Sees Largest Exchange Outflow in Five Weeks Ahead of Key Economic Data
Bitcoin has experienced its largest net outflow from exchanges in five weeks, with 14,942 BTC leaving trading platforms, according to data from analytics firm Santiment. This significant movement occurs just ahead of critical macroeconomic events, including the Federal Reserve’s interest rate decision on Wednesday and the release of Gross Domestic Product (GDP) and Personal Consumption Expenditures (PCE) data on Thursday.
Santiment suggests that investors moving Bitcoin off exchanges could signal a reduction in immediate selling pressure. However, the latest figures also draw attention to a larger outflow recorded in September. On September 22, a substantial 17,755 BTC was withdrawn from exchanges, after which Bitcoin’s price surged above $86,600. While the current outflow is smaller, both instances involve considerable amounts of the cryptocurrency being moved from trading platforms.
The analytics firm highlights $80,000 as a crucial level to monitor amidst the anticipated volatility. Maintaining this level could support a potential rebound towards the $82,500 to $84,000 range. Conversely, a decisive drop below approximately $79,000 would undermine the bullish outlook. A recovery back above $82,500 following the economic data releases would provide stronger confirmation of upward momentum.
Meanwhile, crypto analyst Sykodelic posits that Bitcoin may be poised for another significant rally. This optimism stems from the asset recently reclaiming two key weekly indicators: the 50-week simple moving average and the Supertrend. Sykodelic notes that this technical setup has historically preceded major price expansions for Bitcoin, citing instances in 2015, 2019, 2020, and 2023. The analyst also observed that Bitcoin has never fallen back below the price at which it reacquired these two indicators.
Institutional demand for Bitcoin appears to be waning once again. US-listed spot Bitcoin Exchange-Traded Funds (ETFs) saw outflows totaling $4.5 billion in June. While these funds attracted $6.2 billion in August and September, October has seen a negative trend, with over $26 million in net outflows recorded so far.
On the corporate front, MARA Holdings has attracted attention after transferring approximately 1,000 BTC, valued at around $80.19 million, to BitGo in a single transaction earlier this week. This move has fueled speculation that the Bitcoin mining firm might be preparing to sell its holdings. On-chain tracker Lookonchain flagged the transfer, and Hupzy cautioned that such a large movement could introduce selling pressure into the market. However, the transfer itself does not definitively confirm a sale.
