- Centralized exchange (CEX) outflows show an average daily outflow of about 2,000 BTC.
- Glassnode reports that the CEX outflow could indicate a BTC accumulation.
- Also, CEX deposit fees have dipped while withdrawal fees have spiked.
A surge in BTC outflows from centralized exchanges (CEX) suggests that the BTC market is in accumulation mode. Notably, since May about 2,000 BTC, currently worth about $66 million, has been flowing out of CEX daily.
At the same time, there has been a reduction in exchange on-chain transaction fees for deposits. The fees fell to 14% from 17% in May. On the other hand, withdrawal fees have spiked from 2.37% to 5.4% this month. The rise in withdrawal fees also points at a possible accumulation.
In addition, on-chain analysis firm, Glassnode, recently reported that BTC reserves on CEXs have fallen back to the pre-April ATH. Also, Glassnode alluded to Grayscale Trust leading the accumulation in BTC.
However, several other institutional players/ whales could be contributing to the accumulation. For instance, according to Glassnode’s Liveliness metric, BTC long-term investors have been mopping up excess BTC supply.
Also, the price slump triggered a reversal as investors liquidated their positions. In fact, this caused “a persistent net outflow from exchanges.” However, the recent accumulation has pushed the BTC net transfer volume back into a negative flow. Glassnode noted,
On a 14-day moving average basis, the last two weeks, in particular, have seen a more positive return to exchange outflows, at a rate of ~2k BTC per day.
Also, Glassnode pointed out that the current exchange depletion is similar to the market trend preceding the April ATH. As such, the pattern could indicate a looming market rebound.