On October 24, major exchanges recorded a net withdrawal of funds as the price of Bitcoin (BTC) briefly reached the $35,000 mark for the first time in a year. The movement of funds from the exchanges is considered a strong signal because it usually shows that traders are moving their assets from the exchanges and into safe storage, waiting for the rise in prices.
According to data shared by cryptocurrency analytics firm CoinGlass, Binance experienced the largest withdrawal of funds, with more than $500 million transferred from the exchange in the last 24 hours, followed by Crypto.com with $49.4 million in outflows. and OKX, with USD 31 million. Most other exchanges recorded less than $20 million in withdrawals.
Withdrawals from cryptocurrency platforms have recently led to fears of a “bank run” following the collapse of FTX in November 2022. However, the latest withdrawals are more in line with the sentiment of traders than movements caused by fear during the peak of the bear market. Data from Glassnode confirms that Bitcoin withdrawals from exchanges in recent days have increased with price increases.
The price increase also led to the liquidation of approximately $400 million in short positions. In the last 24 hours, 94,755 traders have seen their derivatives positions liquidated. The largest single liquidation order took place on Binance, worth $9.98 million.
On-chain analysts also focus on the market value to realized value ratio (MVRV), a metric that compares the market value of the asset to its realized value. It is calculated by dividing the market capitalization of a cryptocurrency by its realized capitalization. The realized price is determined by the average price at which each coin or token last moved on-chain. The MVRV ratio is currently at 1.47. The last time there was a bull market, the MVRV ratio was 1.5.
https://twitter.com/hmalviya9/status/1716691890089668767?ref_src=twsrc%5Etfw
Bitcoin reached USD 35,000. Wallets with profit reached 79.72%.
A bull market begins when the MV Ratio remains above 1.5.
We are currently at 1.47. I am sure that bitcoin will reach $40,000 in the next few days, which will make the MV ratio reach 1.6.
The total capitalization of the cryptocurrency market increased more than 7.3% in the last 24 hours to $1.25 trillion, the highest valuation since April. The reason for the development is believed to be increased speculation on the launch of a Bitcoin exchange-traded fund.
