Bitcoin

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The movement of assets away from cryptocurrency exchanges is perceived as a bullish signal. It signifies that traders are shifting their holdings out of exchanges and are no longer inclined to sell.
On the 24th of October, major cryptocurrency exchanges experienced a net outflow of assets. This noteworthy event coincided with Bitcoin’s price briefly touching the $35,000 threshold for the first time in a year. The migration of funds away from exchanges is considered an optimistic indicator, as it reveals that traders are relocating their assets from exchanges to more secure storage options, anticipating a surge in prices.
According to data disclosed by the <a rel="noopener noreferrer nofollow" title="crypto" href="https://thebittimes.com/tag/crypto.html">crypto</a>currency analytics company CoinGlass, Binance witnessed the most substantial outflow, with a staggering $500 million exiting the <a rel="noopener noreferrer nofollow" title="exchange" href="https://thebittimes.com/tag/exchange.html">exchange</a> within the last 24 hours. It was closely followed by <a rel="noopener noreferrer nofollow" title="crypto" href="https://thebittimes.com/tag/crypto.html">crypto</a>.com, with outflows totaling $49.4 million, and OKX, which saw $31 million leave the platform. In contrast, most other <a rel="noopener noreferrer nofollow" title="exchanges" href="https://thebittimes.com/tag/exchanges.html">exchanges</a> reported outflows of less than $20 million.
Recent outflows from cryptocurrency platforms have sparked concerns of a “bank run,” reminiscent of the FTX collapse in November 2022. However, the most recent outflows appear to be more aligned with trader sentiment than fear-induced withdrawals during the peak of the bear market. Data from Glassnode confirms that Bitcoin outflows from exchanges in recent days have surged in tandem with the rise in BTC’s price.
This price surge also triggered the liquidation of approximately $400 million worth of short positions. Over the past 24 hours, 94,755 traders experienced the liquidation of their derivative positions, with the largest single liquidation order occurring on Binance, valued at $9.98 million.
On-chain analysts also pointed to the market value to realized value (MVRV) ratio, a metric comparing an <a rel="noopener noreferrer nofollow" title="asset" href="https://thebittimes.com/tag/asset.html">asset</a>’s market value to its realized value. This ratio is calculated by dividing a <a rel="noopener noreferrer nofollow" title="crypto" href="https://thebittimes.com/tag/crypto.html">crypto</a>currency’s market capitalization by its realized capitalization, which is determined by the average <a rel="noopener noreferrer nofollow" title="price" href="https://thebittimes.com/tag/price.html">price</a> at which each coin or token was last moved on-chain. Currently, the MVRV ratio stands at 1.47. Notably, the last bull run witnessed a similar MVRV ratio of 1.5.
In the past 24 hours, the total market capitalization of the cryptocurrency market has surged by over 7.3%, reaching a valuation of $1.25 trillion—the highest point since April. This surge is attributed to growing speculation surrounding the launch of a spot Bitcoin exchange-traded fund.
The post A major asset drain occurs on cryptocurrency exchanges due to the spike in Bitcoin prices. appeared first on BitcoinWorld.
Source: <a rel="noopener noreferrer nofollow" target="_blank" href="https://thebittimes.com/a-major-asset-drain-occurs-on-cryptocurrency-exchanges-due-to-the-spike-in-bitcoin-prices-tbt67809.html">https://thebittimes.com/a-major-asset-drain-occurs-on-cryptocurrency-exchanges-due-to-the-spike-in-bitcoin-prices-tbt67809.html</a>

A major asset drain occurs on cryptocurrency exchanges due to the spike in Bitcoin prices.

TheBitTimes

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