Large BTC outflow
A record daily bitcoin (BTC) outflow from cryptocurrency exchanges is causing optimism that the price of the largest cryptocurrency by market capitalisation will continue its parabolic rise.
Bitcoin has risen more than 150% since the beginning of the year and recently set a new all-time high, less than three years after the previous record date.
On December 11, 2020, Arcane Research published data from Glassnode, which shows that cryptocurrency exchanges saw an outflow of 4,000 BTC (about $774 million) on December 10. The figure of 1.81% represents the largest decline in bitcoin on exchanges since the end of August 2017. In terms of bitcoin prices, the outflow of 4,000 coins corresponds to the actual volume of BTC on exchanges on 28 July 2017. At that time, more than 50,000 BTC had moved from exchanges to non-custodial wallets. Less than 6 months after that day in 2017, bitcoin reached its previous record high when it surpassed $20,000.
After several months of sideways movement, bitcoin showed a major breakout in November. After a sudden spike between mid to late October, bitcoin maintained its trend and added more than $5,700 to its price in November, posting a 42% increase at the month's close. Judging by the fact that more than $774 million in BTC was withdrawn from exchanges in one day, a number of holders are preparing for another significant upswing. Some analysts believe that the short-term pullback is most likely due to selling pressure that occurred when it reached its yearly high. Indeed, bitcoin has undergone a series of consecutive price corrections, sending its value below the $18,000 mark. The bullish scenario for bitcoin remains in place as institutional support for BTC continues.
Recently a major asset management company, Fidelity, announced plans to start accepting bitcoin as collateral for cash loans. Indeed, in 2020, there has been a notable institutional adoption of bitcoin. This is demonstrated by listed companies such as MicroStrategy and Square, among others, which hold BTC as a reserve asset for their treasuries.