Bitcoin Held in Exchange Wallets Rising at Pace of $1.16B a Month, Data Show
Bitcoin (BTC) stashed in wallets tied to centralized cryptocurrency exchanges is rising at the fastest pace since May, hinting at a potential bull pause in the market. Blockchain analytics firm Glassnode's bitcoin exchange net position change metric, which measures the number of coins held by exchange wallets on a specific date compared to the same date four weeks ago, rose to 31,382.43 BTC ($1.16 billion) on Sunday.
An inflow into exchange wallets is widely taken to represent investors' intention to liquidate their holdings, a potential selling pressure, or deploy coins as a margin in futures and options markets. Meanwhile, an outflow represents accumulation. The BTC exchange net position change has been consistently positive since Nov. 1. Historically, such periods have coincided with bull market breathers or price pullbacks. The safety of coins held in exchange wallets came into question late last year after Sam Bankman Fried's FTX exchange collapsed, which, at the time, was the third largest. That saw investors move coins off exchanges and into their direct custody.
