Highest Bitcoin exchange exits since May suggest another BTC price rally

September has turned out to be a very volatile month for bitcoin so far, as the asset has gone through several highs and lows, including yesterday’s impressive surge to over $58,000.

However, BTC could be on the verge of another rally, given the significant exits from exchanges, which recently hit multi-month highs.

$750 million in withdrawals

Data from IntoTheBlock shows that September 10 marked the highest levels of BTC withdrawals from trading platforms since May, marking a four-month high for this metric. The decrease in bitcoin reserves on exchanges reduces the immediate selling pressure of the asset, which is usually considered a bullish development.

In fact, the ITB chart shows that the last time such a large part of the bitcoin supply was withdrawn from trading centers (end of May) was followed by a price increase that brought the asset from less than $68,000 to $72,000 in a matter of days.

Instead, massive inflows in late July led to a price crash that pushed the cryptocurrency from over $68,000 to below $64,000. Additionally, the price of BTC fell further in early August to a multi-month low below $50,000.

As such, the recent pullbacks could be a signal for even more rallies around the corner. The price of BTC already recovered from the post-CPI dump at $55,500 and is now above $58,000 in anticipation of the upcoming US FOMC meeting next week.

Yesterday saw the largest net outflow of Bitcoin from exchanges since May, with a net outflow of $750 million.

This indicates a significant accumulation of $BTC headlines pic.twitter.com/dA2Rvv6MGA

— IntoTheBlock (@intotheblock) September 11, 2024

Aside from dwindling exchange reserves, the growing number of stablecoins ready to be deployed for purchases could also push the price of bitcoin or some of the altcoins higher.

Landscape ETF

While investors pulled the aforementioned $750 million worth of bitcoins out of exchanges on September 10, that date saw $117 million in net inflows into local BTC ETFs. This was the highest day of net receipts since August 26.

However, the trend changed again on September 11, as investors pulled a total of $43.9 million from the financial vehicles. Ark Invest’s ARKB was the hardest hit with $54 million in withdrawals, while Fidelity’s FBTC attracted $12.6 million.

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