Coinspeaker BitMEX Records Second-Largest Bitcoin Outflow in History, What This Means?
In a massive development, one of the most popular crypto exchanges BitMEX registered the second-largest Bitcoin outflow of 35,486 BTC in its history. This event holds a greater significance as the “Exchange Netflow” indicator on BitMEX has shown a strong correlation to Bitcoin price movements in the past.
As per data provided by CryptoQuant, large bitcoin outflows from BitMEX suggest that top BTC investors have been withdrawing their holdings, and moving them either to cold storage or for strategic sales on other platforms.
However, such a movement of BTC reduces the immediate selling pressure on the exchange, thereby adding stability to the Bitcoin price and also serves as a catalyst for the rally ahead. Moreover, moving large amounts of Bitcoins from BitMEX is often seen as a sign of accumulation. This shows that the high net-worth investors of Bitcoin are betting on the asset’s future potential.
Photo: CryptoQuant
BitMEX has consistently attracted attention from analysts and enthusiasts because of its significant impact on the cryptocurrency derivatives market. Major BTC movements on BitMEX are seen as strategic moves by key players, creating considerable psychological effects on the market.
BTC Price Action
After the drop to $53,500 earlier this week on Monday, the Bitcoin price has bounced back more than 5% from the lows and is currently trading at $57,950 levels as of press time. Bitcoin bulls are eyeing an immediate surge past $60,000 in order to confirm the uptrend going ahead.
On one hand, the German government has triggered massive sell-offs once again. Earlier today, the German government moved a total of nearly 9000 BTC worth over $650 million from its holdings. Despite this move, the Bitcoin price hasn’t shown any immediate reaction.
While the German govt. is selling its BTC pretty fast, the inflows into spot Bitcoin ETFs have increased simultaneously. In the last three days, the US Bitcoin ETFs have recorded total inflows to the tune of $645 million with BlackRock’s IBIT capturing a majority share of these inflows.
Permanent holders, mostly custodial wallets with no outflows, accumulated 85K #Bitcoin in the last 30 days.
These wallets are neither ETFs, exchanges, nor miners. During the same period, 16K BTC flowed out of ETF holdings.
While some panic sell, "the others" are buying. pic.twitter.com/t9oN6pVwST
— Ki Young Ju (@ki_young_ju) July 10, 2024
Ki Young Ju, CEO of Cryptoquant, revealed that permanent holders, primarily custodial wallets with no outflows, have accumulated 85,000 Bitcoin in the past 30 days. These wallets are distinct from ETFs, exchanges, and miners. During the same period, ETF holdings experienced an outflow of 16,000 BTC. This trend highlights a divergence in market behavior, with some investors panicking while “the others” are buying.
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BitMEX Records Second-Largest Bitcoin Outflow in History, What This Means?