Major crypto exchanges recorded a net outflow on Oct. 24 as Bitcoin price briefly touched the $35,000 mark for the first time in a year. The movement of funds away from exchanges is considered a bullish sign as traders move their assets away from the centralized platforms in anticipation of a price surge.
According to data shared by crypto analytic firm Coinglass, Binance saw the biggest outflow with over $500 million moving off the exchange over the past 24 hours followed by crypto.com with $49.4 million in outflow followed by OKX with $31 million in outflow. Most other exchanges recorded below $20 million outflow.
Outflow from crypto platforms in recent times has led to “bank run” fears after the FTX collapse in November, however, the most recent outflow is more in line with trader sentiment than fear-induced withdrawals during the peak bear market. Glassnode data confirms that the Bitcoin outflow from exchanges over the past couple of days has risen in tune with the price surge of Bitcoin.
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The price surge also led to the liquidation of millions worth of short positions with total liquidations amounting to $400 million. Over the last 24 hours, 94,755 traders saw derivative positions liquidated. The largest single liquidation order happened on Binance, worth $9.98 million.
On-chain analysts also pointed toward the market value to realised value (MVRV) ratio, a metric that compares the market value of the asset to the realized value. It is calculated by dividing a crypto’s market capitalization by its realized capitalization. The realized price is determined by the average price at which each coin or token was last moved on-chain. The MVRV ratio currently sits at 1.47. The last time there was a bull run, the MVRV ratio was 1.5.
#Bitcoin hit $35K. Wallets in profits hit 79.72%.
The Bull Market starts when the MV Ratio stays above 1.5.
We’re now at 1.47. I’m positive about #bitcoin hitting $40K in the next few days, which will send the MV ratio to 1.6. pic.twitter.com/uCgdNLGRnq
— hitesh.eth (@hmalviya9) October 24, 2023
The crypto market cap has risen over 7.3% in the last 24 hours to $1.25 trillion, the highest valuation since April. The catalyst behind the surge was believed to be further speculation around the launch of a spot Bitcoin exchange-traded fund.
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