Whales Take Advantage of Bitcoin Hysteria to Withdraw $200 Million from Exchanges

By Tsunami 03/8/23 11:32 AM

In recent news, Glassnode, a blockchain data analysis firm, has reported that approximately $200 million worth of Bitcoin was withdrawn from exchanges yesterday, making it the third-largest withdrawal year-to-date. This significant withdrawal comes after a series of events, including Fed Chairman Powell’s testimony to the Senate and the ongoing Grayscale vs. SEC case.

Balance of Exchanges by Size, sourced from Glassnode

The exchange balance data suggests that Bitcoin was initially deposited on exchanges due to fears of higher interest rates. However, as volatility and hysteria surrounding the market increased, large amounts of Bitcoin were withdrawn by whales, taking advantage of the opportunity.

Another data analysis firm, CryptoQuant, has also reported on the BTC MVRV EMA 100 metric, which is an essential indicator for determining the bitcoin price cycle. This metric is based on the realized value of the holders’ pocket, and the bitcoin price always reacts to the 100-day moving average of the MVRV ratio.

Typically, when the bitcoin price rises above this EMA, a long-term bitcoin price growth can be expected. Therefore, testing level 1 of this metric is crucial, and if the price of bitcoin responds positively to this level, long-term price growth can be anticipated.

Overall, these data reports highlight the growing interest and volatility in the cryptocurrency market. Investors and traders alike are closely monitoring the market and using these metrics to make informed decisions regarding their investments. The impact of recent events, such as Powell’s testimony and the ongoing Grayscale vs. SEC case, continues to reverberate through the market, resulting in fluctuations in cryptocurrency prices.

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