– The outflow of assets from crypto exchanges is seen as a positive sign, indicating traders are moving their assets away from exchanges and not looking to sell.
– On October 24, major crypto exchanges experienced a net outflow as Bitcoin briefly reached $35,000 for the first time in a year.
– Binance saw the largest outflow with over $500 million, followed by crypto.com with $49.4 million and OKX with $31 million.
– This outflow is seen as a reflection of trader sentiment rather than fear-induced withdrawals during a bear market.
– The movement of funds away from exchanges coincided with the rise in Bitcoin’s price.
– The surge in price also led to the liquidation of millions worth of short positions, totaling $400 million.
– On-chain analysts have pointed to the market value to realized value (MVRV) ratio, which currently sits at 1.47, as an indicator of a bull run.
– The crypto market cap has increased by 7.3% in the last 24 hours to $1.25 trillion, the highest valuation since April.
– The surge is believed to be driven by speculation surrounding the launch of a spot Bitcoin exchange-traded fund.