BTC $47292.81 (-1.6%)
ETH $3325.25 (-2.7%)
USDT $1.00 (0.12%)
BCH $610.84 (-2.5%)
BSV $162.13 (3.60%)
LTC $175.53 (-2.8%)
BNB $409.49 (0.01%)
ADA $2.29 (-3.0%)
DOGE $0.23 (-3.1%)
BTC $47292.81 (-1.6%)
ETH $3325.25 (-2.7%)
USDT $1.00 (0.12%)
BCH $610.84 (-2.5%)
BSV $162.13 (3.60%)
LTC $175.53 (-2.8%)
BNB $409.49 (0.01%)
ADA $2.29 (-3.0%)
DOGE $0.23 (-3.1%)

Daily CEX Outflow of 2,000 BTC Points at an Accumulation

Traders-Withdraw-2000-BTC-Centralized-Exchanges-Daily
  • 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.

Prior to this, the crypto market slumped in May causing BTC to tumble almost 50% from its $64,804.72 April all-time high (ATH). At the time of writing, BTC is trading at $33,306.02.

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.

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Avid reader and writer with a passion for sharing crypto news and trends. Uses her background in finance to help readers better understand the crypto market and investments. Hopes to see mainstream crypto adoption in the near future, especially in Africa.