New data show an enormous amount of Bitcoin was taken off crypto exchanges on Friday September 30^th, the last day of Q3; essentially reducing the amount of tradable BTC on the market.

As noted in a tweet by on-chain data aggregator @santimentfeed, “Bitcoin saw 34,723 of its coins move off exchanges on September 30^th, indicating what may be a hint of trader confidence heading into Q4. The last time at least this much BTC left exchanges was June 17^th, where prices jumped +22% in the next 4 weeks.”

The 34,723 in coin outflow represented over $600 million in US dollars.

Two days later, @santimentfeed tweeted:

“Bitcoin whales are showing signs of sustained accumulation, which has been a rarity in 2022. Since September 27^th, addresses holding 100 to 10K BTC have collectively added back 46,173 BTC back to their wallets as large USDT holdings have dropped.”

Could this off-chain exchange data and wallet accumulation by whales mean a BTC bull run is on the horizon?

Generally speaking, when large amounts of BTC are removed from exchanges, it has traditionally been a bullish indicator. Why? well, it indicates investors are showing long-term conviction in the asset, and want to hold it in secure, private wallets.

Additionally, by removing coins from exchanges, the true tradable supply of Bitcoin lessens, which could lead to upside pressure even without additional buying demand.

It’s interesting to note, that while October has often been a brutally poor month for stocks (known as the October Effect) the month has historically been quite bullish for Bitcoin and its investors.

See potential Bitcoin price movements through 2030, HERE

Or Read more about the @santimentfeed analysis , HERE

 

Source: https://www.newsbtc.com/analysis/btc/exchanges-close-q3-with-massive-bitcoin-outflows-why-a-rally-is-on-the-horizon/