Bitcoin price surge spurs asset outflows from crypto exchanges
The overall crypto market capitalisation has surged by over 7.3 percent in the last 24 hours, reaching $1.25 trillion, its highest valuation since April
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Bitcoin price surge has triggered substantial asset outflows from major crypto exchanges. This development is seen as a bullish sign, reflecting traders' confidence in Bitcoin's continued upward trajectory. The movement of funds away from exchanges and into secure storage suggests that traders anticipate further price increases.
According to data provided by crypto analytics firm CoinGlass, Binance witnessed the largest outflow, with over $500 million leaving the exchange within the past 24 hours. This trend was followed by crypto.com, recording $49.4 million in outflows, and OKX, with $31 million. Most other exchanges saw outflows of less than $20 million.
These outflows are seen as a strong indicator of trader sentiment rather than fear-driven withdrawals, as witnessed during the peak of the bear market. Data from Glassnode confirms that the outflows align with Bitcoin's recent price surge.
In response to the price surge, approximately $400 million worth of short positions were liquidated in the last 24 hours. A total of 94,755 traders experienced the liquidation of derivative positions, with the largest single liquidation order, worth $9.98 million, occurring on Binance.
On-chain analysts have also pointed to the market value to realised value (MVRV) ratio, a metric that assesses an asset's market value compared to its realised value. The current MVRV ratio stands at 1.47, closely resembling the ratio during the last bull run, which was 1.5.
