Gate.io Blog Bitcoin Exits Exchanges: Largest Single-Day Outflow Valued at $1 Billion in 12 Months

Bitcoin Exits Exchanges: Largest Single-Day Outflow Valued at $1 Billion in 12 Months

01 January 08:00

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![](https://gimg2.gateimg.com/image/article/1690791857hotspot.jpeg)
## [TL; DR]
On 29 December <a href="/price/vechain-vet" target="_blank" class="blog_inner_link">购买唯链</a> recorded the largest single-day outflow of about 28,000.

A decrease in the quantity of <a href="/price/bitcoin-btc" target="_blank" class="blog_inner_link">Bitcoin</a> on exchanges shows a possibility that its price may rise soon.

There has been an increase in institutional bitcoin on-chain activity.

## Introduction 
The initial crypto market sentiment for 2024 depends on the performance of the various categories of cryptocurrencies in 2023. Investors often assess the change in price of bitcoin and major altcoins like <a href="/price/solana-sol" target="_blank" class="blog_inner_link">Solana</a> and [Ether (ETH) to forecast](https://www.gate.io/price-prediction/ethereum-eth "Ether (ETH) to forecast") the momentum for the New Year. So far, there are clear signs that bitcoin may perform well in 2024.

In this article, we analyze the recent bitcoin on-chain activities including exchange inflows and outflows. The reason is that exchange inflows indicate the possible direction the [price of bitcoin will take in 2024](https://www.gate.io/price-prediction/bitcoin-btc "price of bitcoin will take in 2024"). Nevertheless, there are several other key events [like BTC halving](https://www.gate.io/blog_detail/1800/bitcoin-se-reducir%C3%A1-a-la-mitad-en-2024-tendr%C3%A1-btc-otra-carrera-alcista "like BTC halving") that will take place during the year.

## Bitcoin’s Largest Single-Day Outflow in Months
The bitcoin’s on-chain activity shows that the BTC market is bullish which encourages crypto investments. For example, recently there has been a decrease in the amount of bitcoin on both centralized and decentralized exchanges due to a rise in its outflow.

For example, on Wednesday 29 December 2023 there was an outflow of over 28,000 BTC worth around $1 billion from exchanges. That was the [single largest BTC outflow](https://studio.glassnode.com/metrics?a=BTC&category=&m=transactions.TransfersVolumeExchangesNet&s=1464073154&u=1703721600&zoom= "single largest BTC outflow") since December 2022.

Large outflow of bitcoin from exchanges is a bullish indication due to the reduction in supply in the market. That also indicates that bitcoin whales and other bitcoin holders are willing to hold rather than trade BTC. In that case, they may be willing to adopt a long-term holding strategy. Based on the current market situation it may be the best time to <a href="/how-to-buy/bitcoin-btc" target="_blank" class="blog_inner_link">buy Bitcoin</a>.

As per [CryptoQuant](https://cryptoquant.com/asset/btc/chart/exchange-flows/exchange-netflow-total?exchange=coinbase_advanced&window=DAY&sma=0&ema=0&priceScale=log&metricScale=linear&chartStyle=column "CryptoQuant"), an analytics firm, Coinbase, a centralized exchange, which has become the custodian of the 12 anticipated spot bitcoin exchange traded funds (ETFs) in the United States recorded an 18,000 BTC outflow.

The rising BTC outflow has heightened speculation of a potential increase in institutional activity before the expected date of spot bitcoin ETF application approvals. As a result of such a large outflow, the balance of BTC on exchanges has dropped to 2,327,025 BTC, the lowest level since April 2018.

A decrease in the volume of bitcoin on exchanges shows that there is a drop in selling pressure which may lead to BTC price appreciation. Several factors such as the holiday season and the expectation of change in regulations may prompt a decrease in the amount of bitcoin on exchanges.

It is important to note that Coinbase has refuted the claim of over 18,000 BTC outflow from the exchange. Commenting on X Brian Armstrong, the Coinbase CEO, said, “This is false. Way off from our internal data."
![](https://gimg2.gateimg.com/image/article/1704872443img_v3_026v_1d7d8ddf-83ea-4e77-8214-8b698ce51bix.jpg)
Source: x.com

## Institutional Activity Increase before the Expected Date of Approval of Spot Bitcoin ETFs
Speculation is increasing that many institutions may acquire much bitcoin before the date of the [expected launch of spot bitcoin ETFs](https://www.gate.io/learn/articles/these-are-the-high-profile-spot-bitcoin-etf-applications-currently-in-pllay/1258 "expected launch of spot bitcoin ETFs"). The SEC’s approval of the crypto ETFs is anticipated to take place during the second week of January this year.

MicroStrategy is one institution that has been buying bitcoin for a long time. Recently, it purchased bitcoin worth $615.7 million, indicating that there is an increase in the number of institutions that believe that bitcoin is a worthwhile long term investment asset.

On the other hand, several institutions have taken ready measures to invest in bitcoin and its derivatives. For example, ARK Invest has divested from GBTC to invest in BITO Bitcoin futures ETFs. Analysts view this as a move to position itself strategically before possible regulatory changes.

## Bitcoin Responds Positively to Changes in the Market
As the crypto community [anticipates the launch of spot bitcoin ETFs the market has responded positively](https://www.gate.io/learn/articles/pse-trading-the-nature-impact-and-prospects-of-bitcoin-spot-etf/1319 "anticipates the launch of spot bitcoin ETFs the market has responded positively"). The <a href="/price/bitcoin-btc" target="_blank" class="blog_inner_link">Bitcoin price</a> has been on an uptrend for weeks now. For example, on Tuesday 1 January its price surpassed $45,000. That was the first time the bitcoin price surged past that mark since April 2022.

Also, that bitcoin price surge occurred after the Securities and Exchange Commission reported that it may make its decision on the spot bitcoin ETF known to the applicants by Tuesday or Wednesday before the 10 January deadline.

Justin d'Anethan, head of APAC business development of Keyrock, a crypto market maker, commented on the recent BTC price move and the prospect of the approval of spot bitcoin ETFs.

He [said](https://www.theblock.co/post/265684/institutional-investors-poised-for-increased-crypto-activity-in-2024-analysts-say "said"), “There's nothing much happening on the macro side that would lead one to believe it's anything but a crypto-related dynamic. “In this case, we've had news of Blackrock, Fidelity and other spot bitcoin ETF applicants [confirming](https://www.bloomberg.com/news/articles/2023-12-29/blackrock-names-jane-street-jpmorgan-as-bitcoin-etf-authorized-participants "confirming") names of the brokers that would support their BTC operations.”

He continued, “Most investors expect some kind of official decision by the first half of this month, so imminently.”

Another crypto commentator, [Ali Charts has predicted](https://x.com/ali_charts/status/1740671046582149381?s=46&t=qzsvHvtDB3yjTaoaylh-2g "Ali Charts has predicted") that bitcoin will remain bullish for a long period. He based the analysis on the 3-year bullish period, followed by one year bearish correction trend. In this context, Alichart has presented the following chart to show the possible bitcoin price movement.
 ![](https://gimg2.gateimg.com/image/article/1704872563img_v3_026v_12ccaf4f-d2f3-417b-b0d9-794a5a63e0ix.jpg)
Projected Bitcoin Price Movement – Alicharts

As you noted, the bitcoin price is likely to keep rising in 2024.

## Conclusion 
Bitcoin witnessed a large single-day outflow of about 28,000, indicating the willingness of bitcoin whales to adopt a long-term holding strategy. The reduction of bitcoin from exchanges shows a decrease in selling pressure and a high possibility of a strong price rise. All in all, the crypto community expects the value of bitcoin to increase [if the SEC approves spot bitcoin ETFs](https://www.gate.io/blog_detail/3646/grayscale-suggestion-_s-sec-s-re-_uation-of-bitcoin-etfs "if the SEC approves spot bitcoin ETFs").

<div class="blog-details-info">
<div>Author:**Mashell C.**, Gate.io Researcher
<div class="info-tips">\*This article represents only the views of the researcher and does not constitute any investment suggestions.
<div>\*Gate.io reserves all rights to this article. Reposting of the article will be permitted provided Gate.io is referenced. In all cases, legal action will be taken due to copyright infringement.
</div>

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TL；DR

Introduction

Bitcoin’s Largest Single-Day Outflow in Months

Institutional Activity Increase before the Expected Date of Approval of Spot Bitcoin ETFs

Bitcoin Responds Positively to Changes in the Market

Conclusion

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Bitcoin Exits Exchanges: Largest Single-Day Outflow Valued at $1 Billion in 12 Months

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