1 Million Bitcoin Pulled From Exchanges In The Past 3 Years: What It Means For The BTC Market
Undoubtedly, Bitcoin has seen significant growth over the past years both in market price and as a network, solidifying its reputation as a considerable financial haven. Adding more credibility to this fact, a CryptoQuant analyst known as Gaah recently highlighted a notable trend: a large volume of Bitcoin—roughly 1 million BTC—has been withdrawn from crypto exchanges over the past three years. This trend reflects not only the increasing recognition of Bitcoin as a financial asset but also a notable shift in investor behavior. It also suggests a changing dynamic in how market participants view and use the asset in recent years. What It Means For The BTC Market Gaah’s analysis points to a clear trend: approximately one million BTC have been withdrawn from exchanges over the past three years. This pattern reflects a growing preference among investors to hold Bitcoin off-exchange, a strategy that often signals long-term confidence in the asset’s value. Gaah wrote: This trend reflects both the growing global adoption of the asset as a store of value and a strategy against market volatility, using the asset itself as a margin in hedge operations. Bitcoin exchange reserve. | Source: CryptoQuantGaah also highlighted that the trend first gained attention in November 2022, when significant outflows coincided with a period of market weakness. Investors appeared to be accumulating Bitcoin in anticipation of a notable recovery. 1 million Bitcoin withdrawn from exchanges in the last 3 years “The withdrawal of BTC from exchanges reduces liquidity and, consequently, selling pressure, which can support the price in short-term realizations.” – By @gaah_im Read more 👇https://t.co/sZHbF3r36m pic.twitter.com/DfFm4YtGWj — CryptoQuant.com (@cryptoquant_com) January 20, 2025 Now, two years later, a similar wave of withdrawals is occurring, but this time against the backdrop of Bitcoin trading near historic highs. Gaah noted: This contrast between accumulation during a bearish period and withdrawal after strong rises reveals the different market dynamics impacted by changes in behavior since the market matured. It is worth noting that by reducing liquidity on exchanges, these withdrawals can also decrease selling pressure, providing support for Bitcoin’s price during market corrections. However, the analyst mentioned: With fewer BTC available for trading, the market is preparing for new, more volatile price movements. Bitcoin Market Performance Meanwhile, BTC has so far been on a rollercoaster ride since the year began. After initially beginning the year with an increase, BTC was quick to face correction which left investors in despair. However, as of today, the asset is now back in a bullish action. In the early hours of Monday, Bitcoin saw a notable surge renewing its all-time high after a breach above $109,000. TC price is moving upwards on the 2-hour chart. Source: BTC/USDT on TradingView.comThis has caused the asset’s weekly performance to enter a double-digit gain. However, at the time of writing, there has been a slight retracement with BTC now trading at $104,782, marking a 0.1% decrease in the past day. Featured image created with DALL-E, Chart from TradingVIew Samuel Edyme Meet Samuel Edyme, Nickname - HIM-buktu. A web3 content writer, journalist, and aspiring trader, Edyme is as versatile as they come. With a knack for words and a nose for trends, he has penned pieces for numerous industry player, including AMBCrypto, Blockchain.News, and Blockchain Reporter, among others. Edyme’s foray into the crypto universe is nothing short of cinematic. His journey began not with a triumphant investment, but with a scam. Yes, a Ponzi scheme that used crypto as payment roped him in. Rather than retreating, he emerged wiser and more determined, channeling his experience into over three years of insightful market analysis. Before becoming the voice of reason in the crypto space, Edyme was the quintessential crypto degen. He aped into anything that promised a quick buck, anything ape-able, learning the ropes the hard way. These hands-on experience through major market events—like the Terra Luna crash, the wave of bankruptcies in crypto firms, the notorious FTX collapse, and even CZ’s arrest—has honed his keen sense of market dynamics. When he isn’t crafting engaging crypto content, you’ll find Edyme backtesting charts, studying both forex and synthetic indices. His dedication to mastering the art of trading is as relentless as his pursuit of the next big story. Away from his screens, he can be found in the gym, airpods in, working out and listening to his favorite artist, NF. Or maybe he’s catching some Z’s or scrolling through Elon Musk’s very own X platform—(oops, another screen activity, my bad…) Well, being an introvert, Edyme thrives in the digital realm, preferring online interaction over offline encounters—(don’t judge, that’s just how he is built). His determination is quite unwavering to be honest, and he embodies the philosophy of continuous improvement, or “kaizen,” striving to be 1% better every day. His mantras, “God knows best” and “Everything is still on track,” reflect his resilient outlook and how he lives his life. In a nutshell, Samuel Edyme was born efficient, driven by ambition, and perhaps a touch fierce. He’s neither artistic nor unrealistic, and certainly not chauvinistic. Think of him as Bruce Willis in a train wreck—unflappable. Edyme is like trading in your car for a jet—bold. He’s the guy who’d ask his boss for a pay cut just to prove a point—(uhhh…). He is like watching your kid take his first steps. Imagine Bill Gates struggling with rent—okay, maybe that’s a stretch, but you get the idea, yeah. Unbelievable? Yes. Inconceivable? Perhaps. Edyme sees himself as a fairly reasonable guy, albeit a bit stubborn. Normal to you is not to him. He is not the one to take the easy road, and why would he? That’s just not the way he roll. He has these favorite lyrics from NF’s “Clouds” that resonate deeply with him: “What you think's probably unfeasible, I've done already a hundredfold.” PS—Edyme is HIM. HIM-buktu. Him-mulation. Him-Kardashian. Himon and Pumba. He even had his DNA tested, and guess what? He’s 100% Him-alayan. Screw it, he ate the opp. Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. 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