Bitcoin Exchange Balances Hit 2-Year Lows, Signals Bullish Trend

Bitcoin has seen a drop in its holdings over the past 60 days, with a decline in the amount of BTC stored on different exchanges.

Bitcoin (BTC) exchange holdings have dropped significantly over the past 60 days, indicating a shift in market sentiment. According to crypto analyst HODL15Capital, over 200,000 BTC were withdrawn from exchanges.

Investors pulled 204,000 Bitcoin from exchanges in 60 days 👇 pic.twitter.com/n0whBLP9iY

The withdrawals span several exchanges, including Coinbase, Binance, Kraken, and Gemini. The largest share of Bitcoin outflows occurred at Coinbase, which lost 86,316 BTC. However, Coinbase still holds the largest amount of BTC on any exchange with 740,491 BTC. Binance shed 42,865 BTC, bringing its balance to 558,827 BTC.

Other exchanges such as Kraken, Gemini, and Upbit also saw Bitcoin outflows. Specifically, Kraken's balance decreased by 13,076 BTC, Gemini lost 10,188 BTC, and Upbit withdrew 6,024 BTC from its exchange.

Moreover, exchanges like Bitfinex and Robinhood also saw reductions in their Bitcoin balances. Bitfinex lost 9,023 BTC, while Robinhood withdrew 2,100 BTC. With these withdrawals, the total Bitcoin held across all exchanges decreased to 2,435,446 BTC.

Bitcoin Exchange Inflows and Outflows YTD

Throughout the year, Bitcoin wallet inflows and outflows have followed a distinct pattern, according to data from Coinglass. At the beginning of the year, the market remained neutral, and inflows and outflows were largely balanced.

However, as Bitcoin's price increased throughout the year, particularly after crossing the $60,000 mark in October, outflows dominated.

Bitcoin Price Drops as Trading Volume Surges

The drop in Bitcoin exchange holdings aligns with overall market movements as Bitcoin's price shifted over the previous day. Bitcoin opened at a high of $104,750 but faced downward pressure throughout the day, reaching a low of $99,000 by midnight. At the time of writing, the price is $101,136, reflecting a 3.31% decline in value.

Despite the price drop, trading volume surged to $101.01 billion, an increase of 44.25%, indicating heightened market activity.

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