The Binance exchange has registered massive BTC outflows from Binance over the past week. These transactions exceeded $2 billion in net withdrawals. Despite this movement, the price of Bitcoin (BTC) shows surprising resilience. The on-chain analytics firm CryptoQuant was the first to report this significant trend. Investors are withdrawing their assets massively.
The hard data provided by analysts shows intense activity. More than 30,000 BTC left the centralized exchange’s (CEX) coffers in just seven days. This volume represents one of the most significant outflow movements of 2024. However, the market did not react with panic selling. Experts note that these movements are not heading to other exchanges for liquidation. On the contrary, funds are being moved to cold wallets. This pattern suggests a clear preference for security.
This behavior is crucial for understanding current investor sentiment. Traditionally, large outflows from CEXs could be interpreted as a loss of confidence in the platform. Nonetheless, the current context suggests a consolidated ‘HODLing’ strategy. Investors prefer to secure their assets offline amid uncertainty. This demonstrates notable maturity in the market. Traders are opting for self-custody rather than hastily liquidating their positions. The “not your keys, not your coins” narrative is gaining strength.
Is this the calm before the race to $130,000?
The resilience of BTC’s price is a bullish signal. Selling pressure appears to be remarkably low despite the massive BTC outflows from Binance. Traders are not spooked by recent volatility. The MVRV Z-Score, a key technical indicator, also supports this view. This ratio suggests that Bitcoin is not in overbought territory. This indicator reinforces the idea of sustained bullish potential. The digital economy shows signs of underlying strength. Long-term holders (LTH) are not selling.
Although the market could face short-term corrections, the underlying trend appears solid. Strategic accumulation by investors is evident. If this trend of self-custody withdrawals continues, the liquid supply available on exchanges will decrease drastically. This supply shock could drive prices higher. Several technical analysts are already setting ambitious targets. The next major milestone for Bitcoin is set at the $130,000 mark.
