Bitcoin keeps leaving exchanges.

In the last two days, we have seen an outflow of 50,000 $BTC from exchanges. Keep in mind that this is an enormous amount, considering that only 450 new Bitcoins are generated per day.

When you remove an asset from a platform, it is because you do not intend to sell it in the short term. This, combined with the halving and the increase in institutional demand, can create a supply shock. Starting from March 2020, at the beginning of the pandemic, we saw Bitcoins suddenly start leaving exchanges. This had never happened before; the trend was to send more Bitcoin to exchanges. But since March 2020, institutions have begun to get more involved in cryptocurrencies, and the situation changed completely.

Now, we are seeing a significant outflow of 50,000 Bitcoins in the last two days. I have reviewed all the exchanges and, surprisingly, the massive outflows have been from Kraken. I want to confirm this because if an on-chain tracker can verify this, I would be surprised. I think it is an error from Glassnode itself, although other platforms are reporting the same data.

Why do I say it is an error? Because if we review the history of Kraken, we have practically never seen these types of outflows. In just two days, we have moved from average levels of the last few years to levels not seen on the platform since 2017. If this data is accurate, it is an enormous anomaly.

I always say the same thing in crypto: everything happens slowly until it happens suddenly. Imagine that tomorrow we see another massive outflow on Coinbase; this could create FOMO out of nowhere and kickstart the bull run. What is happening now is something brutally bullish, both from institutional demand and ETFs in Wall Street, as well as messages from Larry Fink and actions from other countries and institutions.

In conclusion, the current market dynamics are extraordinarily bullish. The coming days will be crucial in determining whether these trends continue, potentially setting the stage for a major market rally. Stay tuned. 😀