As Bitcoin (BTC) inches closer to its all-time high (ATH) of $108,786 recorded in January this year, a growing number of investors and traders are withdrawing BTC and Ethereum (ETH) from centralized exchanges. This movement signals potential institutional accumulation ahead of a major market rally.
Investors Withdraw Bitcoin And Ethereum From Exchanges
According to a recent CryptoQuant Quicktake post by contributor Amr Taha, nearly $1 billion worth of BTC and ETH has been withdrawn from top crypto exchanges such as Binance and Coinbase over the past few days.
On-chain data reveals that 67,265 ETH – worth approximately $167 million – was recently withdrawn from Binance. This marks one of the largest Ethereum withdrawals from the platform in recent months, pointing toward strong accumulation activity by large holders or institutions.
Historically, large-scale crypto withdrawals from exchanges are considered bullish signals, particularly when assets are transferred to cold wallets. This behavior typically indicates that the holders do not plan to sell in the short term and may be preparing for ETH staking on decentralized platforms or simply storing assets with long-term value expectations.
In a related development, US-based exchange Coinbase saw a withdrawal of 8,000 Bitcoin – valued at over $800 million based on current prices. This event coincided with the announcement that Coinbase is being added to the S&P 500 index.
For the uninitiated, The S&P 500 Index is a market-capitalization-weighted index that tracks the performance of 500 of the largest publicly traded companies in the US. Coinbase’s addition to the S&P 500 index is not only going to significantly boost investor confidence in the digital assets platform but also help it attract greater institutional capital.
Taha interpreted these developments as clear signs of smart money accumulation, often a precursor to price expansion. Such strategic positioning could potentially push both BTC and ETH toward new all-time highs.
Specifically, in regard to the ETH withdrawal from Binance, the CryptoQuant contributor noted that this might reflect investor optimism tied to key bullish catalysts – including the potential approval of staking for ETH exchange-traded funds (ETFs), upcoming network upgrades, or capital rotation.
Signs Of A Healthy Market Uptrend
Unlike speculative bull runs driven by excessive leverage, the current rally shows signs of being more sustainable. For instance, ETH’s funding rates have remained largely stable during the latest price surge, suggesting that the market isn’t overheated.
Bitcoin is also flashing strong signals of an extended uptrend. The Bitcoin Bull-Bear Market Cycle indicator recently signaled early signs of a bullish trend reversal, adding further weight to the bullish outlook.
However, concerns remain about the longevity of the current bullish phase. On-chain data shows that BTC holders are aggressively taking profits, which may be a sign of a local top. At press time, BTC trades at $103,638, down 0.3% in the past 24 hours.
