2025-02-08 23:00:14 by AMBCrypto

Journalist Share this article Bitcoin saw 47K BTC outflows, but the price remained somewhat stable on the charts Exchange reserves have continued to decline across the market Bitcoin recently saw a significant outflow of 47,000 BTC, a movement that has sparked debate on whether it represents a true supply shock or a routine internal transaction. Historically, large outflows have been associated with long-term accumulation, reducing BTC’s liquid supply and potentially setting the stage for bullish momentum. However, this latest move requires a closer look at on-chain data and price action. Analyzing Bitcoin exchange reserves – Is accumulation in play? An analysis of Bitcoin‘s netflows showed that it has been seeing significant outflows, before the spike it witnessed a few days ago. BTC outflows spiked to over 47,000 BTC, making it the largest such move since 2022. The significance of these outflows led to talks about a supply shock. However, this alone did not quite confirm a supply shock.  Source: CryptoQuant Also, the Bitcoin Exchange Reserve chart revealed a sustained decline in BTC held across exchanges, dropping from over 3 million BTC in mid-2024 to around 2.45 million BTC in February 2025. A shrinking exchange balance typically means investors are moving BTC to private wallets for long-term holding, reducing the supply available for immediate sale. How did Bitcoin’s price react? Following the outflows, Bitcoin’s price remained stable around $96,152 – A sign that the immediate market impact was minimal. The Bollinger Bands indicated moderate volatility, with the price consolidating between $94,935 and $107,638. The 50-day moving average sat at $98,662, acting as a near-term resistance level. Source: TradingView While major outflows can indicate accumulation, a lack of strong price reaction means that this movement was not perceived as a market-altering event. At least in the short term. Futures market underlines speculation Glassnode’s Futures Open Interest chart revealed a steady increase in speculative positioning in January, with Open Interest nearing $60 billion. Rising Open Interest and significant exchange outflows often mean that traders are betting on an upcoming supply squeeze. At the time of writing, the OI had a reading of around $44 billion. Source: Glassnode However, if funding rates turn excessively positive, it could indicate that the market is over-leveraged. This could make Bitcoin susceptible to liquidation-driven pullbacks. Supply shock or routine move? While the 47K BTC outflows seemed to align with a broader trend of declining exchange reserves, its immediate market impact has been muted. Several factors, including a lack of a sharp price movement and the potential for internal wallet reshuffling, suggest that this was not an immediate supply shock. Instead, a part of a long-term accumulation trend. – Read bitcoin (BTC) Price Prediction 2025-26 That being said, if Bitcoin withdrawals and whale activity continue like this, a supply squeeze could emerge in the coming months. The trend will gradually exert upward pressure on Bitcoin’s price.  Share