Traders move assets off exchanges in anticipation of price surge
Major crypto exchanges experienced a net outflow of funds on October 24 as the price of Bitcoin briefly reached $35,000, its highest point in a year. This movement of assets away from centralized platforms is seen as a bullish sign, indicating that traders are preparing for a potential price surge.
Exchanges see substantial outflows
According to data from crypto analytic firm Coinglass, Binance saw the largest outflow, with over $500 million leaving the exchange in the past 24 hours. This was followed by crypto.com with $49.4 million and OKX with $31 million. Most other exchanges recorded outflows of less than $20 million.
Outflow reflects trader sentiment
Unlike the fears of a "bank run" that followed the collapse of FTX in November, the recent outflow from crypto platforms appears to be more in line with trader sentiment. Glassnode data confirms that as the price of Bitcoin has surged, there has been an increase in the outflow of Bitcoin from exchanges over the past few days.
Short positions liquidated
The price surge also led to the liquidation of millions of dollars' worth of short positions, with total liquidations amounting to $400 million. In the last 24 hours, 94,755 traders had their derivative positions liquidated. The largest single liquidation order occurred on Binance, with a value of $9.98 million.
MVRV ratio indicates bullish market
On-chain analysts have also pointed to the market value to realized value (MVRV) ratio, a metric that compares the market value of an asset to its realized value. The current MVRV ratio is 1.47, and during the last bull run, it was 1.5. This suggests that the market may be headed towards another period of significant growth.
Crypto market cap reaches highest valuation since April
Over the past 24 hours, the crypto market cap has risen by over 7.3%, reaching $1.25 trillion. This is the highest valuation since April. The surge in price is believed to be driven by speculation surrounding the launch of a spot Bitcoin exchange-traded fund.
