- Bitcoin reached $35,000, the highest in over a year.
- Major exchanges like Binance saw over $500 million in net outflows as Bitcoin rallied.
- Outflows suggest investors are moving assets to secure storage due to bullish sentiment.
Bitcoin briefly hit $35,000 on Monday for the first time in over a year as traders withdrew funds from exchanges, signaling growing bullish sentiment.
According to data from CoinGlass, major exchanges like Binance saw net outflows of more than $500 million over the past day as Bitcoin rallied. Outflows typically indicate investors are moving assets into secure storage in anticipation of higher prices.
The outflows align with Bitcoin’s double-digit price surge rather than bear market-induced withdrawals. On-chain data shows BTC outflows rising in tandem with its break past $34,000 resistance.
Bitcoin’s pump led to nearly $400 million in liquidations
BTC’s pump also led to nearly $400 million worth of liquidations in leveraged short positions, predominantly on Binance. The volatility caught overly bearish traders off guard.
Analysts also highlighted the market value to realized value (MVRV) ratio, which compares Bitcoin’s market cap to its realized cap based on the average price held on chain. MVRV sitting at 1.47 hints that Bitcoin may be on the cusp of a renewed bull run.
The crypto market cap reached $1.25 trillion. Driving BTC’s breakout is renewed speculation that the SEC may finally approve a spot Bitcoin ETF for mainstream crypto investing. However, some remain cautious about getting overzealous, given BTC’s history of volatility and false breakouts.
For now, the combination of key price hurdles being surmounted, leveraged shorts being liquidated, and coins moving off exchanges points to a tentative regime change in the crypto market. But the coming days will determine whether bullish momentum gathers steam or fades once again.