Over 34K BTC Left Exchanges on September 30th

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Investors withdrew more than 34,500 Bitcoin (BTC) from exchanges on September 30th. This is one of the largest Bitcoin withdrawals from exchanges since the massive Bitcoin sell-off in mid-June, 2022. This shows investors could get ready for the last quarter of the year with increased confidence, according to Santiment, one of the largest market intelligence platforms in the cryptocurrency market. 

Over 34k BTC Left Exchanges on Sept. 30

Bitcoin investors seem to be ready for the next quarter as they withdrew more than 34,500 BTC from exchanges on September 30. According to the market intelligence company Santiment, the last time that at least this much Bitcoin left exchanges was in June 2022, when the price then jumped by 22% in just 4 weeks. 

The report released reads as follows:

“Bitcoin saw 34,723 of its coins move off exchanges on September 30th, indicating what may be a hint of trader confidence heading into Q4. The last time at least this much $BTC left exchanges was June 17th, where prices jumped +22% the next 4 weeks.”

Cryptocurrency exchanges are the best way to buy and sell virtual currencies. These platforms became widely available all over the world and they are very user-friendly. Thanks to adding support to multiple payment systems, investors can withdraw and deposit fiat currencies allowing them to connect traditional finances with digital assets. Moreover, crypto exchanges are the best option for traders that speculate on market fluctuations. 

However, crypto exchanges are platforms that hold digital assets on users’ behalf. That means that individuals that hold Bitcoin and other cryptocurrencies on exchanges are not the real owners of the assets, as the coins are kept in custody by the trading platform. If you want to withdraw your BTC to a cold-storage wallet for which you hold the private keys, then you need to request “permission” from the crypto exchange that will release the funds to your wallet. 

Eventually, long-term investors that hold larger positions in BTC are usually advised to keep their digital currencies out of exchanges. This is in order to keep control over their funds without having to rely on centralized exchanges. Therefore, the most recent withdrawal from exchanges could also be a sign that investors want to keep their BTC secured outside these platforms. 

The withdrawal of 35,700 represents over 0.181% of the current Bitcoin circulating supply. Should the withdrawal trend continue, we could see a positive impact on price if demand suddenly spikes. Nevertheless, this would not be enough for the price of BTC to move higher, as the world is currently experiencing difficult times. 

A financial crisis could be next to the corner and the energy crisis accentuates in Europe as the Nord Stream 1 and 2 pipelines have been heavily damaged last week. Therefore, demand for BTC and other digital currencies might remain low until the crisis does not find an end. 

At the time of writing this article, Bitcoin is being traded at $19,130 and it has a market capitalization of $366 billion according to CoinGecko. This week will be key for BTC and the future of financial markets. 

Jonathan Gibson

Jonathan Gibson