Whales Are Buying the Dip, Blockchain Data Shows

Centralized exchanges registered a net outflow of over 17,000 BTC, worth more than $1.6 billion at the going market price of $98,600

Bitcoin saw a massive outflow from centralized exchanges on Wednesday, with over 17,000 BTC heading out of the platforms, new data shows.

That's the biggest single-day exodus of coins since April 2024. At current market prices, the outflows are valued at over $1.6 billion.

"Whales are buying this dip," Andrew Dragosch, head of research at Bitwise, said on X, referring to the large outflow of coins.

Investors typically take direct custody of coins when planning to hold them for the long term. Hence, a large outflow of exchanges is taken to represent bullish sentiment.

However, it's worth noting that blockchain data, though widely used to assess market conditions, can be skewed by internal wallet transfers by exchanges.

"Coinbase alone processed net withdrawals of over 15,000 BTC," Dragosch added.

Analysis by Timechainindex.com showed that Coinbase on Wednesday split four addresses totaling over 20K BTC into 60 addresses, which hints at a possible major purchases by ETFs or MicroStrategy this week.

On-chain data compiled by CryptoQuant showed that all crypto exchanges had a cumulative negative netflow of 47K BTC on Wednesday, with 15.8K of that being attributed to Coinbase.

Bitcoin fell below $96,800 during Wednesday's late U.S. trading hours only to turn higher early today after Eric Trump, the Son of President Donald Trump, encouraged the family-linked crypto platform World Liberty Financial to make its first bitcoin investment.