Cryptocurrency traders maintain a bullish drive to end the year with another positive on-chain metric going into 2024. The data from blockchain analytics firm,
Glassnode shows over $1.1 billion net outflows from centralized exchanges as Bitcoin (BTC) bulls expect more highs into the new year.
This signals that investors are confident in the market and are moving their funds to more favorable positions.
Bitcoin traders are moving their assets out of centralized exchanges into wallets and decentralized exchanges in anticipation of the next bull run.
The move comes as the asset hovers near $43,000 following a month of huge gains driven by cooling inflationary measures taken by the Feds and the widespread anticipation for a spot Bitcoin ETF approval by the United States Securities and Exchange Commission (SEC).
Bullish sentiment drives growth
Traders are increasingly looking to hold their assets for longer periods of time, leading to net outflows from centralized exchanges.
This can be seen across bear and bull cycles, with analysts predicting movements as a result. For example, Coinbase posted outflows of over 18,000 BTC as investors look long-term in their cryptocurrency exposure.
Coinbase Custody is currently listed as the custodian for nine Bitcoin ETF applications in the United States.
The community is eagerly awaiting the approval of these applications, as an ETF would provide a more convenient way for institutional investors to enter the market.
In addition, Coinbase has been listed on NASDAQ, which could provide a gateway for even more institutional investors to get involved in the market.
Bitcoin’s price has been on an upward trend for most of 2019, with the asset peaking in late June following the filing of ETF applications and court victories over the SEC.
The massive inflows into the Bitcoin market can be seen from its institutional products that have skyrocketed following anticipation for a spot ETF.
Miners reduce holdings
BTC miners are continuing to sell their assets despite the price of BTC reaching $43,000. Miners were among the most hit in their bear cycle, leading to the selling of reserves and equipment.
However, a turn in the price of BTC has seen mining operations become profitable ahead of the next halving.
On Dec 27, the value of Bitcoin plunged by 700 BTC. This suggests that most miners are taking profits, reducing debt, and investing in more efficiency ahead of the upcoming halving.
This event is projected to take effect in April.