On July 8, another record was broken in the cryptocurrency ecosystem. The total amount of bitcoin (BTC) withdrawn from cryptocurrency exchanges, especially Coinbase, broke the 1-year record.
Output Quantities In Stock Markets
More than 20,660 BTC assets were withdrawn in total on July 8, according to data shared by Glass node. This figure represents the largest amount of BTC withdrawn from bitcoin exchanges on a daily basis in 2020, which is often interpreted as a bullish signal.
Interestingly, since the beginning of 2020, only the amount of BTC withdrawn from Coinbase has reached 20,787, which is higher than the amount withdrawn from all exchanges.
In addition, although Coinbase has seen large numbers in bitcoin outflows, it has seen larger figures in deposit rates. In general, because it experiences negative outflows, it means that the average amount of withdrawals is higher than the average amount of deposits. The average withdrawal amount can also be multiplied by one or more large withdrawals made by retention service customers.
A Bull Signal?
Investors ‘ tendency to pull their bitcoins from exchanges and store them in their own wallets is generally interpreted as a bullish signal. But this bullish signal reflects long-term expectations, not short-term ones. Because of this move, investors want to wait a while without any action because they think the price will rise in the future.
However, given the mixed signals in the market, it is necessary to be very careful about short-term investments. Because right now, both the traditional markets and the cryptocurrency market are giving different signals because of the epidemic. Unexpected price movements from time to time also lead investors to be more cautious.
