The possibility of Bitcoin (BTC) surpassing $40,000 by the end of the year has increased with a significant increase in BTC withdrawal transactions from centralized crypto exchanges. According to on-chain data provider Glassnode, a significant amount of Bitcoin has been withdrawn from centralized crypto exchanges.
Since November 17, over 37,000 BTC worth approximately $1.4 billion has been withdrawn from centralized crypto exchanges. This indicates that investors are not willing to sell BTC in the short term and prefer to hold them in their wallets.
Some of the withdrawals could be the result of Binance’s agreement with US authorities, accusing them of non-compliance with anti-money laundering regulations. However, the main trigger seems to be the expectations for the approval of a spot exchange-traded fund (ETF) in the US until February 2024.
Historical data shows that BTC withdrawals from centralized crypto exchanges are a strong signal of price bottom points and usually followed by price increases in the medium term.
The rise of Bitcoin price above $38,000 in the early hours led to a general increase in the cryptocurrency market, with some major altcoins showing an increase of more than 5%. The total market value of the cryptocurrency market reached $1.5 trillion, the highest level since May 2022, indicating an increase of approximately $400 billion since the beginning of October.