The chart from on-chain metrics platform Glassnode shows that bitcoin (BTC) withdrawals from exchanges have broken a three-year high.
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.
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.