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Bitcoin Withdrawals From Exchanges Increase to a 3-Year High

2 mins
Updated by Ana Alexandre
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In Brief

  • The number of bitcoin transfers from exchanges rose to over 2,500 per hour.
  • Bitcoin withdrawals from exchanges have broken a three-year high. 
  • This surge indicates an incredibly bullish sign during the bitcoin price rally.
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The chart from on-chain metrics platform Glassnode shows that bitcoin (BTC) withdrawals from exchanges have broken a three-year high. 

Source: Glassnode

The surge in btc withdrawals probably means that investors are actively cashing in their profits. At the same time, as their confidence in the leading cryptocurrency keeps growing, such an activity can be linked to transferring btc holdings to cold wallets.

BTC Bull Run Keeps Gaining Momentum

On Feb. 8, the price of bitcoin hit a new all-time high (ATH) of over $43,000, after Tesla had disclosed its $1,5 billion btc purchase. Immediately after the announcement, leading crypto exchanges, including Binance, Gemini, and Kraken, witnessed a large influx of traders. As a result, they all faced technical problems in executing orders.

Amidst this notable spike in market activity, Binance even had to temporarily cease all withdrawals. However, it took the exchange around 30 minutes to get back to normal.

Earlier that day, crypto exchanges saw the second-largest traffic volume in three years. This indicates that retail investors FOMO (fear of missing out) in order to gain maximum profits from ongoing market movements. 

Expanding Crypto Exposure

As Tesla said in a filing with the United States Securities and Exchange Commission, it “may acquire and hold digital assets from time to time or long term.”

Tesla’s huge buying comes after several more institutions pouring huge investments in bitcoin. BeInCrypto previously reported that over $1.2 billion btc are held by private and publicly-traded companies.

Grayscale continues holding reins purchasing over 42,000 btc, while MicroStrategy has considerably added to its holding already worth over $1 billion.

The current interest from institutional investors empowers the status of bitcoin as a good long-term investment. While the btc supply in crypto exchange wallets has been dropping considerably, bitcoin whales still expressed their confidence. On Feb. 2, crypto wallets holding at least 1,000 btc surpassed mid-tier addresses (10 to 1,000 btc) in terms of percent of supply held.

At press time, bitcoin keeps going bullish and sits at almost $45,000. In this context, the high btc withdrawals come with no surprise. Retail investors flock to the market expecting volatility, which is natural after the markets have seen gains. 

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Amy was born in Malmo, Sweden. She became interested in cryptocurrency due to her husband, who was an early investor in bitcoin. Now, Amy writes for a number of crypto outlets, invests in cryptocurrencies, and spends time with her cat Buterin.
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