Bitcoin Worth $1.6 Billion Moves Off Exchanges in Major Withdrawal
Bitcoin exchanges saw a significant movement of funds on Wednesday as over 17,000 BTC, valued at $1.6 billion, left centralized platforms. The data, reported by Glassnode and shared by Bitwise's head of research Andre Dragosch, represents the largest single-day withdrawal since April 2024, with Bitcoin trading at $98,600.
Coinbase emerged as the primary source of these outflows, processing more than 15,000 BTC in net withdrawals. Further analysis from Timechainindex.com revealed that Coinbase split four addresses containing over 20,000 BTC into 60 separate addresses, suggesting potential large-scale purchases by ETFs or MicroStrategy.
Coinbase split 4 addresses totaling 20,949 BTC, into 60 Addresses: 20 x 245 BTC and 40 x 401 BTC
— Sani | TimechainIndex.com (@SaniExp) February 5, 2025
looks like something is cooking, possible major purchases this week by ETFs or MSTR https://t.co/br8iMlnyaD
Data from CryptoQuant painted a broader picture of the market movement, showing total negative netflow across all crypto exchanges reached 47,000 BTC on Wednesday. Coinbase's portion of this activity amounted to 15,800 BTC, aligning with earlier observations.
The large-scale movement of Bitcoin off exchanges often signals long-term holding intentions, as investors move assets to personal custody. This pattern typically occurs when major players make significant acquisitions for extended holding periods.
During Wednesday's late U.S. trading hours, Bitcoin's price dropped below $96,800. However, the market saw an upturn early Thursday following news that Eric Trump had supported World Liberty Financial's first Bitcoin investment.
The blockchain data used to assess these market conditions comes with a note of caution, as internal wallet transfers by exchanges can influence the numbers. Despite this consideration, the scale of Wednesday's movement stands out in recent market history.
