Bitcoin Mega Bull Ahead? Exchange Balances Keep Plummeting

• Investor sentiment has flipped bullish.
• Bitcoin exchange balances continue to sink.
• Bitcoiners were bullish well before the central banks pivoted.

The Fed and the People’s Bank of China have embraced monetary expansion , delivering a much-needed boost to crypto markets. This renewed optimism has driven $90 billion in inflows this week, pushing token prices higher.

Amid the renewed optimism, Bitcoin held on exchanges continues to decline, suggesting Bitcoiners remain as bullish as ever.

Bitcoin Exodus from Exchanges Accelerates

Bitcoin surged to an 8-week high of $65,800 on Thursday, pushing market sentiment firmly into greed territory , according to the Crypto Fear and Greed Index. At the same time, Bitcoin exchange balances continue to decline.

The Bitcoin held on exchanges currently sits at 2.34 million , reflecting a 2% drop since the start of September and a 14% decrease from the year-to-date peak of 2.72 million on February 13, per Coinglass data.

BTC exchange outflows suggest that investors choose to store their Bitcoin in private wallets or cold storage instead of selling, likely in anticipation of future price gains.

As holders transfer their coins into storage, the exchange supply decreases, potentially providing a price tailwind. This trend highlights a strong belief in Bitcoin’s long-term potential.

Investor Confidence

While recent price gains have renewed bullishness, the trend of falling BTC exchange balances indicates that Bitcoin holders were optimistic well before central banks pivoted to stimulus measures.

The year-to-date peak of BTC held on centralized exchanges occurred on February 13, and since then, balances have consistently declined, punctuated by several sharp outflows.

This pattern suggests that Bitcoiners anticipated price appreciation even after March’s $74,000 all-time high. However, this trend may also reflect the commitment of die-hard believers who refuse to sell their BTC.

On the Flipside

• Growing awareness of self-custody and centralized exchange risks may contribute to falling exchange balances.
• While a declining exchange balance is often seen as bullish, it can also indicate a lack of new retail investors entering the market.

Why This Matters

The pattern of Bitcoin leaving exchanges signals unwavering investor confidence in the leading cryptocurrency.

Bitcoin bucks expectations to surge in September.
Bitcoin Breaks September Curse with 8% Surge

Mark Cuban believes he would excel in the SEC chair role.
SEC Chair Gensler Reacts to Cuban’s Job Envy