Centralized Exchanges Record Net Outflows as Bitcoin Price Inches Near $35,000

adobestock-427197276-medi-2 — Source: Adobe Stock

The surge in the price of Bitcoin (BTC) has led to a change in investors’ sentiment towards the market sparking different calls from market players not recorded in months.

Data from on-chain analytics firm CoinGlass show high net outflows from centralized digital asset exchanges as the price briefly hit $35,000 before making a slight decline below the mark.

The recent asset movement points to a new bullish sentiment that investors are not looking to sell their crypto as a result of the price surge.

Per the data, Binance posted $500 million worth of crypto outflows in the last 24 hours while Crypto.com recorded $49.4 million in the same metric across similar timeframes.

Crypto exchange, OKX ranked third with $31 million while other exchanges posted figures hovering around $20 million.

The recent development of short positions worth over $400 million liquidated with the largest order taking place on Binance worth $9.98 million. In total, 94,755 traders across multiple exchanges liquidated derivative positions.

Historically, when the price of an asset is surging, the bull run after long periods of decline leads to holders hoarding assets, transferring them away from exchange while when the market records a significant transfer to exchanges, it usually suggests an imminent sale.

Although most analysts agree that the recent asset movement is borne out of increasing prices, others pointed out that a cross-section of outflows could be the need to store assets more securely.

At press time, BTC trades at $34,539, marking a 12.65% growth in the last 24 hours with the wider market capitalization at $1.27 trillion, a 9.17% increase over the past day.

Altcoins like Ethereum (ETH), Solana (SOL), Ripple (XRP), and Cardano (ADA) have also notched gains of 9.94%, 7.11%, 3.96% and 7.94% as the market flips green.

Spot BTC ETF fuels growth

A dominant percentage of added value to the market can be attributed to speculations of a potential approval of a spot BTC ETF application by the United States Securities and Exchange Commission (SEC).

A significant event in the BTC ETF craze is BlackRock’s listing on Depository Trust & Clearing Corporation and the SEC’s abandoning an appeal in Graysacle’s case.

The price of the market leader has now hit a 16-month high with most metrics including the Bitcoin Fear and Greed Index at greed for the first time in nearly three months.

The double-digit rise of Bitcoin and most virtual assets showed widespread investor sentiment around finance and technology as the stock market penned similar gains.