BitMEX Sees Second-largest Bitcoin Sales in History

Prominent exchange BitMEX has recently recorded a high amount of Bitcoin sales worth 35,486 BTC, making it the second-largest in its history.

In a significant development, BitMEX, one of the most prominent crypto exchanges, recorded the second-largest Bitcoin outflow in its history, totaling 35,486 BTC. This event is of greater importance because the “Exchange Netflow” indicator on BitMEX has historically demonstrated a strong correlation with Bitcoin price fluctuations.

CryptoQuant’s data indicates that significant bitcoin outflows from BitMEX indicate that top BTC investors have been withdrawing their holdings and transferring them to cold storage or for strategic sales on other platforms.

Nevertheless, the immediate selling pressure on the exchange is alleviated by such a movement of BTC, which serves as a catalyst for the upcoming rally and adds stability to the Bitcoin price. Additionally, the transfer of substantial quantities of Bitcoins from BitMEX is frequently perceived as an indication of accumulation. This demonstrates that high-net-worth investors are wagering on Bitcoin’s future potential.

BitMEX has continuously garnered the attention of analysts and enthusiasts due to its substantial influence on the cryptocurrency derivatives market. Key participants regard significant BTC movements on BitMEX as strategic maneuvers with a considerable psychological impact on the market.

Bitcoin Price Action

As of press time, the Bitcoin price has rebounded by over 5% from its lows and is presently trading at $57,950, following a steep decline to $53,500 earlier this Monday. To verify the upward trajectory of the Bitcoin bulls, they are anticipating an instantaneous surge beyond $60,000.

On the one hand, the German government once again incited substantial stock market declines. A total of nearly 9000 BTC, valued at over $650 million, was transferred from the German government’s holdings earlier today. The Bitcoin price has yet to respond immediately to this change.

The inflows into spot Bitcoin ETFs have increased concurrently with the German government’s rapid sale of its BTC. The US Bitcoin ETFs have received $645 million in inflows over the past three days, with BlackRock’s IBIT accounting for most of these inflows.

In the past 30 days, 85,000 Bitcoins have been accumulated by permanent holders, predominantly custodial wallets with no outflows, according to Ki Young Ju, CEO of Cryptoquant. These wallets are distinct from exchanges, miners, and ETFs. ETF holdings experienced an outflow of 16,000 BTC during the same period. This trend underscores a discrepancy in market behavior, as confident investors are fretting while “the others” are purchasing.