On-chain analytics company Santiment reports that 40,785 BTC worth $1.56 billion has been removed from exchanges in the past week. Bitcoin price, on the other hand, saw its intraday high at $ 39,104 today (February 1). This points to the morale change in the Bitcoin market. Santiment (@santimentfeed) shared on Twitter:
"40,785 $BTC were moved away from exchanges in the past week. This was the highest week of #Bitcoin exchange outflow since the 2nd week of September. The continued trend of coins moving to cold wallets is historically good for long-term price movements. "
According to CoinMarketCap data, the BTC price has gained 4.63 percent in the last 24 hours. Ethereum, on the other hand, gained 8.66 percent. Meanwhile, historical data shows that Bitcoin provided positive returns in February. In this respect, bull traders may find some relief.
January was negative for the leading cryptocurrency. However, with the recent upward movements, the last day of January saw a green closing. Bitcoin is currently trading at $38,598 and is trying to make up for the 7% losses it lost in the last week.
What is the explanation for Bitcoin's exit from exchanges?
Whale investors usually start withdrawing their cryptocurrencies from exchanges when they want to hold them for the long term. Of course, such a development can be interpreted as a bullish development for Bitcoin investors. El Salvador's President Nayib Bukele expressed a similar expectation. According to that; A huge price increase is imminent for Bitcoin due to its limited supply.