Bitcoin Forum

According to IntoTheBlock data, since the launch of the spot Bitcoin ETF in January, the weekly net outflow of Bitcoin from exchanges has been consistently increasing. This week, the net outflow reached $540 million, marking the highest amount since June 2023.

This reflects a belief in Bitcoin's potential as a store of value and a hedge against inflation. Long-term holders and institutional investors, in particular, may be taking a more strategic approach to their Bitcoin holdings, viewing them as a strategic asset allocation rather than a short-term speculative investment.

TBH, it has nothing to do with the inflation but I would say that this is a bullish point for Bitcoin as people are moving their funds into cold storage or to non-custodial wallets for long-term custody/holding. Before the start of the Bull Run, the on-chain activity was already indicating the shortage of the accumulation supply and this was the biggest reason  I'm supper bullish for this cycle that the market is gonna hit $200k in BTC.

The capitalization market is gonna hit almost $7T to $9T, and with this capital with the current dominance of the Bitcoin target seems like a piece of cake but this net capital amount in the market is really optimistic it depends on the regulatory developments are gonna happen in 2025. Hoping for the best here.

I just responded on a similar type of topic where the OP showed the same concerns, basically I just to think about another cause of this outflow is Binance fuds, as we all know when Binance was sued and blocked by Binance, and now Nigeria, people started to withdraw there funds from CEXs, I also withdrew my funds from Binance when I come to find that my country has also asked Binance to pay the Fine

I knew why would Binance pay fine to our country, so I suspected things might go wrong side so I withdrew all of my funds, and many other fellow might have suspected the same. This fud has created a stress among the investors, and besides this market is now in bullish state, and many hacked has been occurred also, plus people are more educated too, so they prefer to use non-custodial wallets. One thing I know suspect is people might not prefer non-custodial wallets especially for the BTC coin, due to the high fee on transaction.

You have to realize that institutions and funds are constantly buying bitcoin and this is public data, data that we know about. We don't know how much rich people are buying and believe me, they are buying because they can't ignore the fact that ETFs got a green light in the US while they are still restricted in the EU. Chances are Europeans will be allowed to invest in the next 12 months and at the same time we'll be past halving...

Smart people were telling us to buy bitcoin when it was below $20k and now people are waking up that this was in fact one of the best opportunities in making a profit in their short lives.

What I expect to happen is a supply squeeze that some bitcoiners call the god candle which will happen when there's not much bitcoin left on exchanges and s large market opens to bitcoin, like China or Russia.
Anyway, good times ahead.

And a lot of the info is educated guesses at best.
If an exchange moves a bunch of coins from KNOWN cold wallet A to UNKNOWN cold wallet B then a lot of these sites report it as coins moving out.
But it's just moving internally until we later find out that it was just a balancing of cold storage.

-Dave

Bitcoin is definitely much more than a short term speculative investment indeed, because for me, the market seasons must be in effect at any given time and the rush to withdraw HODLings either to settle pressing matters or reinvest or trade affects the profit an investor should gain from it.
That's why long term HODLing is more rewarding in more ways than one and with BTC still retaining its value with a good noticeable profit margin for the investor.

BTC ETF is sure gaining traction by the day with much more than individual investors grabbing a share by investing in value rather than get- rich- quick investment like shitcoins.
There might just be the notion that the ETF has done way better than the Ordinals initiative since the launch till date, but this is an argument am not ready to begin.

I wouldn't put much stock in this. It's not like this is a permanent trend where people are suddenly all holding long term. You see this news pop up over and over and over. Outflows up, outflows down. It really just has to do with market conditions. When people think Bitcoin is gonna go up they move off exchanges. It's just short term changes in market sentiment. It's not news when outflows go up while Bitcoin price is going up, especially heading into a bull run.

The general long term trend of more and more Bitcoin being locked up for long periods of time is good. But these weekly numbers are meaningless because you can literally just watch the price and know that this sort of stuff is happening.

And add the fact that we're getting a good chunk of net inflows through the Bitcoin NFTs — we could potentially breach all-time highs earlier than we'd expect. Not really sure if I'd like that though.. I definitely prefer a slower but steadier increase. But alas, the market will stay unpredictable as usual.

Any point of view I don't see any relationship between Bitcoin and inflation. Bitcoin has a store value, and everyone stores or trades it to gain significant profits. It's true that many institutional investors are entering the Bitcoin market, and the market is pumping too. But I don't think this could reduce inflation anyway. Governments control the economy, and they are responsible for inflation. 

I don't know much about on-chain transactions and stuff, most of the time there are so many outliers in the data which includes transfer from Exchange wallet to Exchange wallet (Cold) and that also gets added in this list. According to the price action, there is a sudden boom in the price and if this continues, it will break the ATH very soon. Maybe before 10th March? Let's see how it goes.

All we can do is just speculate about reason for the movement of these funds out of exchanges. It could be that the exchanges are changing wallets or people are withdrawing them and putting them in in custodial wallets. It could also be that people now prefer to invest in the ETF more than keeping funds in centralized exchanges.

Bitcoin might not reduce a country's inflation but it can help shield people's money from losing value during inflation. Bitcoin can be used as a hedge against inflation mostly in countries that are going through currency devaluation or loss of value. Instead of keeping funds in local currencies which is losing value, some people prefer to keep their money in Bitcoin to protect their funds from losing value. Such a person will end up making a profit from the increase in the price of Bitcoin and save their money from losing value. An example is Nigeria where even with the restrictions placed on Bitcoin, Nigerians were still embracing it because it was the best to curb individual or household inflation.

I agree with you, I actually prefer a slow but steadier increase but it's not quite happening, bitcoin is still a very volatile asset, and any sharp price increase could later drop down and do some corrections I guess that how it balances out for very sudden price boost.

The bull run is just starting and I think it has enough fuel to carry it to 100k by this year end, but the price is actually moving up quickly and you can see it approaching 60k soon, what I think it that we might have Little correction soon and then another power pump up to 90k and then 100k.

this is what we have expected anyway… seeing the news about etf will most likely make other people rethink about their decisions and start investing in bitcoin
this outflow could mean anything but for sure corporations out there have been buying and they will hold until they think is necessary just like with other investments

the thing is bitcoin will continue to rise from here and we will observe that very soon,, i believe so for us who has already acquired some bitcoin, good job ;D and for those who hasnt yet better start working to buy some coins ;)

Even if such a slow and sustained growth will be preferable, in the minds of most people the idea that bitcoin is volatile will not fade that easily, and as long as this is the case, the expectation that bitcoin moves as it is moving right now will remain.

Another important factor is that even if the market cap of bitcoin is very high from our perspective, when compared to other markets it is still on the low side, so we will need for the market to grow rapidly for a few more cycles before some sort of stability can be reached.

This is exactly what I thought.
Immediately I saw the news I knew a lot of people would move their coins out of Binance. The same thing happened when they had issues in the US. Binance has a lot of customers from Nigeria and with the current issues they have with the government, it's only wise that people withdraw their funds immediately.

Also, people are buying Bitcoin this period and most people buy from CEX and then transfer the funds to their wallets. It is expected that a lot of Bitcoin will move out of CEX during this period. A lot of trades are going on now too and a lot of these coins will be moved out of the exchanges.

I believe that the growing outflow of bitcoins from exchanges is a positive sign for the long-term potential of Bitcoin. It indicates that more investors are recognizing Bitcoin's value as a reliable store of wealth and are adopting a strategic approach to holding Bitcoin as part of their asset allocation. Furthermore, the upcoming halving may lead Bitcoin holders to opt to retain their coins in anticipation of their value increasing after the halving.

Bitcoin price this week have woken plenty people up from a long slumber, that's why so may investors are rushing to buy and the price pump have also motivated some new investors to come aboard because they are all interested in making profit which will be archived when Bitcoin price finally gets to $100, 000. The outflow will still increase because Bitcoiners are more assure by the current price  and they have faith that the price will continue to surge.

Currently any coin looks attractive as the market is recovering and BTC is heading towards a new ATH again. If BTC will reach $100,000. Not a suggestion but just a reminder. For beginner traders, it is a good idea to try daily trading to find out how the market will fluctuate. When you experience a loss, you will immediately improve your skills and your skills will develop faster than if you just trade in the long term, which does not require special skills. in technical analysis on the market.

One-day or long-term trading depends on the type of trader, whether he acts conservatively or is a risk taker. The more willing traders are to take risks, the faster they become experts compared to conservative traders and are ultimately able to navigate the market and find the answer that BTC is best for investing.

I do not expect that the reason for the increase in the weekly flow of Bitcoin from exchanges is because of “belief in the potential of Bitcoin as a store of value and a hedge against inflation,” as you say, but because everyone does not want to miss out on their share of the pie.

It is certain that Bitcoin is a store of value and a hedge against inflation, but the reason behind what is happening currently is that everyone believes that Bitcoin will exceed 100K$ soon and perhaps more, and they do not want the opportunity to double their profits.

You will confirm this for yourself when Bitcoin crosses 100K$ and you see everyone starting to sell to take profits.

Let's hope those coins are just going into people's cold wallets and not into centralized ownership, like Bitcoin ETFs.

We know most of these Bitcoin ETFs bought their coins, way before the ETFs were launched, but other trading platforms might be buying now to launch new offerings. 

I'll always say this, most person's investing in bitcoin now is because of the profits it offers they care less about what store of value it gives or any other empowerment about privacy and decentralization, many and most of them are already used to or are benefactors of the tradition banking system and government centralization so it's no problem to them to continue in that way.

Inflation has nothing to do with the reason people buy bitcoin, who wants to actually miss out on his share of the pie of this bull run, since the bitcoin ETF approval more traditional investors are pumping money in, some are here cause of the idea of owning bitcoin for the longer term idea of when it would be more expensive for the average man to buy and most are for their bags to be filled with profits, when the bear comes let's see how many of them would still be very interested. That's why you need not to sell all your holding's to gain profits just like them you should be more concerned about accumulating bitcoin so that you would also have a big share in bitcoin when it becomes more expensive than this.