financemagnates.com
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.
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, 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, 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.