The largest outflow was recorded on March 4: in one day, users withdrew 31,900 $BTC from cryptocurrency exchanges, which is equivalent to approximately $2.26 billion. At the same time, about 25,000 BTC were withdrawn from the Bitfinex exchange, where the largest fund outflow since last June was recorded, noted CryptoQuant analyst Axel Adler.
Sharp one-day movements of this scale are most often associated with the transfer of coins to cold wallets, the expert suggested. Over the past week, the outflow of Bitcoins from centralized exchanges exceeded the influx of funds:
February 27: – 2,867 BTC;
February 28: – 1,205 BTC;
March 1: – 251 BTC;
March 2: – 6,129 BTC;
March 3: – 1,819 BTC;
March 4: – 31,900 BTC;
March 5: – 3,478 BTC.
Similar operations can reduce the amount available for trading on Bitcoin exchanges and thereby support positive market sentiment, Adler believes.
The final confirmation of the bullish signal will appear if the negative dynamics persist in the next three to five days, and there is no significant return of Bitcoins to exchanges. In this case, the situation can be interpreted as a stable accumulation phase, experts at CryptoQuant estimate.
At the beginning of March, about $1.1 billion in stablecoins flowed into centralized exchanges. However, the figure then dropped to its current value, around $37.5 million. According to CryptoQuant, the influx of such assets can be considered extreme—rather, it is a normalization after a sharp influx of liquidity.
It is important to consider the context: a significant influx of stablecoins at the beginning of the month was converted into Bitcoins. This explains the anomalous outflow of coins on March 4. Essentially, this is about two manifestations of the same accumulation process of the first cryptocurrency, Adler explained.
Earlier, experts from TheEnergyMag stated that large mining companies have been actively selling accumulated coins in recent months. Representatives of TheEnergyMag believe that this trend may intensify in the near future.