Not a day goes by without some exciting Bitcoin metrics taking center stage. Even though the current price momentum might not indicate it, there is a three-year high for addresses receiving from an exchange. More importantly, the miners’ outflow volume hit a four-month low, alleviating a bit of bearish market pressure.
Bitcoin Exchange Withdrawals Heat Up
It is not entirely surprising to see more and more people withdraw their BTC balances from exchanges today. More specifically, there is a substantial increase in addresses receiving from exchanges. Whether that automatically means every withdrawal goes into long-term storage remains unclear. However,r it is a bullish sign that may spark some excitement as the markets continue to get battered.
Recording a three-year high for this metric is unexpected at this time. When prices go down, people tend to move more funds to exchanges to cash out and wait for better market entry points. As Bitcoin has now dropped below $55,000 again, it will be interesting to see how the market responds in the coming hours and days.
These exchange withdrawals remain intriguing for many reasons, however. There has been a “supply shortage: across centralized exchanges for some time now. This becomes evident when looking at the current BTC balances across exchanges, as that metric continues to decrease rapidly. Combined with a three-year high for addresses receiving from exchanges, a very peculiar situation becomes apparent.
It is unlikely there will be a steep drop-off in BTC balances on exchanges; however, These companies still control vast amounts of BTC across different wallets, making it very easy for investors and speculators to find liquidity. Until a drastic change occurs in this department, the impact of addresses receiving from exchanges will be minimal.
Miners’ Outflow is Decreasing
Being a Bitcoin miner is a very peculiar lifestyle, although one that can prove lucrative. There are multiple revenue sources for those who engage in this activity: the block reward and transaction fees. As it has become more expensive to use Bitcoin lately, one expects the miner earnings from fees to rise accordingly. A five-month high has been recorded, putting the revenue from fees at 18.634%.
When miners get their hands on more Bitcoin, however, there is always the risk of them selling it across the exchanges. That metric is known as Miners’ Outflow and will often hover between 60 and 100 BTC. Today, however, a four-month low is recorded of “just” 50.14 BTC, despite the Bitcoin price decreasing. The outflow has hovered near this level for a while now, but it seems intent on reducing further.
All of these metrics combined present a rather bullish short-term Bitcoin price case. Unfortunately, this market will do its own thing and ignore common logic more often than not. It is not unlikely the price will rebound briefly, but there is a lot of market resistance to contend with. Even so, the world’s leading cryptocurrency has done stranger things before.