Bitcoin price surge sees significant asset outflow on crypto exchanges

Web 3.0 Crypto Outflow

Major crypto exchanges recorded a net outflow on Oct. 24 as Bitcoin price briefly touched the $35,000 mark for the first time in a year. The movement of funds away from exchanges is considered a bullish sign as traders move their assets away from the centralized platforms in anticipation of a price surge.

According to data shared by crypto analytic firm Coinglass, Binance saw the biggest outflow with over $500 million worth of Web 3.0 crypto coins moving off the exchange over the past 24 hours followed by with $49.4 million in outflow followed by OKX with $31 million in outflow. Most other exchanges recorded below $20 million outflow.

Outflow from crypto platforms in recent times has led to “bank run” fears after the FTX collapse in November, however, the most recent outflow is more in line with trader sentiment than fear-induced withdrawals during the peak bear market. Glassnode data confirms that the Bitcoin outflow from exchanges over the past couple of days has risen in tune with the Web 3.0 crypto price surge of Bitcoin.

The price surge also led to the liquidation of millions worth of short positions with total liquidations amounting to $400 million. Over the last 24 hours, 94,755 traders saw derivative positions liquidated. The largest single liquidation order happened on Binance, worth $9.98 million.

On-chain analysts have been monitoring the market value to realised value (MVRV) ratio, which is the ratio of a crypto’s market capitalization to its realized capitalization. The realized price is calculated by the average price at which each coin or token was last moved on-chain, and the MVRV ratio currently stands at 1.47. During the previous bull run, the MVRV ratio was 1.5.

The crypto market cap has grown by 7.3% in the last 24 hours, reaching $1.25 trillion – the highest value since April. This surge is believed to be caused by speculation regarding the launch of a spot Bitcoin exchange-traded fund (ETF) in the near future.

The advent of Web 3.0 is expected to revolutionize the crypto market, providing a platform for data ownership and decentralized applications. This will be accompanied by a range of new crypto coins and tokens, as well as changes in the prices of existing coins. As of now, the exact launch date of Web 3.0 is yet to be determined.

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