Bull market signal sounded? Bitcoin spot exchange outflows reached a new high this year!

According to exchange data, crypto investors seem to have changed their minds about Bitcoin, with the amount of Bitcoin in spot exchange wallets decreasing and external withdrawals reaching their highest level in a year. On-chain data shows that Bitcoin investors have stopped depositing their assets in cryptocurrency exchanges and have begun to withdraw a large amount of money.

Furthermore, the data shows that most of the withdrawals came from retail investors, but whales and institutions have also been hoarding Bitcoin recently. CryptoQuant's data highlights recent trends in Bitcoin investors' withdrawals and deposits on cryptocurrency exchanges. Another interesting point is that their behavior also has a lot to do with price movements. Generally speaking, holders send their coins from personal wallets to trading venues when they intend to sell, and transfer them back to personal wallets when they intend to hold and wait for appreciation.

Therefore, after the fear-mongering caused by Elon Musk and China's increased regulatory efforts, the amount of Bitcoin deposited on exchanges skyrocketed to a new high in mid-May. At that time, the price of Bitcoin had already begun to correct, but it fell another $20,000 to around $30,000.

As the dust settled on the market noise, most investors were choosing to sell off the few remaining Bitcoins in their wallets, but recently they seem to have completely changed their minds, as shown in the figure below.

Meanwhile, there has been a surge in the number of bitcoin withdrawals from exchanges, suggesting that investors may now prefer to hold onto their coins, making a panic sell-off like the one that occurred in May much less likely.

Interestingly, CryptoQuant analysts also asserted that "most of the outflow of Bitcoin (5,800) came from Gate_io", which means that the current willingness to hoard mostly comes from retail investors, because their scale is relatively small (often with less than 1 BTC in their wallets).

In addition to small investors buying and withdrawing Bitcoin from exchanges, other recent reports indicate that Bitcoin whales have begun to do the same thing. After a brief pause and even sell-off in June, by early July, whales with wallets holding 100 to 10,000 Bitcoins accumulated about 60,000 coins in just one day. Their total hoard has now increased to more than 9 million BTC.

The demand for Canada’s first Bitcoin ETF has also prompted the company behind it, Purpose Investments, to once again buy a significant portion of its assets. Bitpush previously reported that its holdings increased by 30% in a few weeks, with the Purpose BTC ETF holding about 22,500 coins.