The amount of the world’s largest cryptocurrency Bitcoin ($BTC) on exchanges has been seeing an increase in outflows “despite the fact that Bitcoin has entered into a fluctuation area since February.”
According to analysis published by on-chain analytics firm CryptoQuant, there has been a steady rise in Bitcoin outflows from exchanges in recent weeks, in a trend that is typically seen as bullish. A smaller supply of BTC exchanges means that the cryptocurrency’s price could rise if demand is maintained or grows.
Source: CryptoQuant
Moreover, the number of new Bitcoin addresses has also been climbing, as CryptoPotato reported, as after hitting multi-year lows in June, this metric has reversed course, a pattern often associated with growing interest in the cryptocurrency.
The exchange outflows come at a time in which the US national debt has surpassed the $35 trillion milestone. The milestone came before Bitcoin faced a rejection as it attempted to breach the $70,000 mark, and ended up correcting to now trade at $63,000.
Notably, leading stablecoin issuer Tether, the company behind the USDT token, has announced record-breaking profits of $5.2 billion for the first half of 2024 while also revealing a significantly expanded portfolio of U.S. government bonds, now valued at an estimated $97.6 billion.
The firm has also revealed it now holds around 80,000 Bitcoin worth around $5.1 billion. As CryptoGlobe reported, last year Tether committed to use 15% of its realized net operating profits to invest in the flagship cryptocurrency BTC.
Unlike traditional banks, which operate on a fractional reserve basis, Tether maintains its cryptocurrencies backed by mostly cash and short-term U.S. Treasury bills. At the time of writing, 3-month U.S. Treasurys are yielding around 5.28%. The firm also holds gold.
Featured image via Unsplash.
