• Major crypto exchanges recorded a net outflow on Oct. 24 as the price of Bitcoin (BTC) briefly touched the $35,000 mark for the first time in a year.
• The movement of funds away from exchanges is considered a bullish sign, as it indicates traders are moving their assets away from exchanges to secure storage, expecting prices to increase.
• According to data shared by crypto analytic firm CoinGlass, Binance saw the biggest outflow, with over $500 million moving off the exchange over the past 24 hours, followed by crypto.com with $49.4 million in outflows, and OKX with $31 million. Most other exchanges recorded less than $20 million in outflows.
• Outflows from crypto platforms recently have led to “bank run” fears after the FTX collapse in November 2022. However, the most recent outflows align more with trader sentiment than fear-induced withdrawals during the peak bear market. Glassnode data confirms that the Bitcoin outflows from exchanges over the past few days have risen in line with BTC’s price surge.
• The price surge also led to the liquidation of roughly $400 million worth of short positions. Over the last 24 hours, 94,755 traders saw derivative positions liquidated. The largest single liquidation order happened on Binance, worth $9.98 million.
• On-chain analysts also pointed toward the market value to realized value (MVRV) ratio, a metric that compares the asset’s market value to its realized value. The MVRV ratio currently sits at 1.47. The last time there was a bull run, the MVRV ratio was 1.5.
• The total crypto market cap has risen over 7.3% in the last 24 hours to $1.25 trillion, its highest valuation since April. The catalyst behind the surge is believed to be further speculation around the launch of a spot Bitcoin exchange-traded fund.
