The market cap of Bitcoin has been shrinking since the start of 2022. A sharp decline in retail and institutional interest, weak network activity and huge selling pressure are not helping BTC bulls. However, Bitcoin whales have accelerated the movement of the crypto asset from digital exchanges to unknown wallets and cold storage.
The crypto analytics platform, Santiment highlighted a significant jump in BTC outflows from crypto trading platforms. According to the company, nearly 26,300 Bitcoin left digital exchanges on Tuesday, which is the highest level since 25 October 2021.
“Despite Bitcoin being 36% below its All-Time High 2 months ago, coins continue to move away from exchanges at an impressive rate. The 26.3k BTC difference between exchange outflow & inflow yesterday is an encouraging sign of less ongoing sell-off risk,” Santiment Tweeted.
The surging outflows include the movement of 4,793 Bitcoin worth more than $200 million from Binance to Xapo. According to Whale Alert, the transfer was executed on 11 January 2022 at 22:31 UTC.
Oversold?
Jurrien Timmer, the Director of Global Macro at Fidelity Investments, believes that Bitcoin is technically oversold. Timmer noted that the $40,000 price level is providing healthy support to BTC. According to him, $40k is an important support level for the most dominant crypto asset.
“The $30k level in 2021 provided support based on my demand model (S-curve model). That same level looks to have moved up to $40k, providing fundamental support once again. It’s a moving target that generally provides a fundamental anchor for price. Is $40k the new $30k? The Fed’s hawkish stance on inflation has had a broad impact. With the liquidity-driven momentum under pressure, it’s not a total shock that crypto has corrected. It doesn’t mean Bitcoin can’t go lower, but it looks like $40k is the new $30k,” Timmer said in a series of Tweets.
