Recent outflows of Bitcoin from centralized exchanges in January have cast a shadow on price predictions, with a significant 20% drop in the BTC/USD pair not deterring investor enthusiasm. Blockchain data firm Glassnode reports that despite market pressures, Bitcoin continues to be withdrawn from exchanges, signaling sustained investor interest.
Exchange Balance Fluctuations
Glassnode’s analysis highlights that Coinbase, a major US-based exchange, saw daily outflows exceeding 10,000 Bitcoins since the launch of the first US spot Bitcoin ETF. However, towards the end of January, the outflow and inflow of Bitcoin began to balance out, suggesting a reduction in market volatility post-ETF launch.
The overall Bitcoin balance on exchanges initially increased in January but took a downward turn after January 23, with a notable decrease of 7,400 Bitcoins, equivalent to $321 million, from trading platforms monitored by Glassnode.
Grayscale’s Diminishing Influence
In contrast to the past, the Grayscale Bitcoin Trust (GBTC) has reduced its daily Bitcoin transfers to Coinbase, with outflows dropping from around $700 million to less than $200 million. On January 25, there was an outflow of 24,000 Bitcoins, but by January 29, the figure had decreased to just over 6,000 Bitcoins.
Financial analyst Tedtalksmacro, using CoinGlass data, suggests a potential shift from net outflows to net inflows for spot ETF products. He questions the bearish narrative in the market, considering the exaggerated reaction to GBTC outflows and predicts a rise in the value of globally traded Bitcoin ETF products as investor confidence grows.