Crypto exchanges are currently experiencing a massive outflow of funds, with $2.68 billion exiting the market over the past month. This trend could significantly impact the short-term price momentum of various cryptocurrencies, including Bitcoin.
According to Defillama’s CEX Transparency data, which tracks inflows and outflows from public wallet addresses of different exchanges, 9 out of 10 monitored exchanges reported negative inflows in the past month. The total outflow from these exchanges has exceeded $2.68 billion, encompassing both altcoins and stablecoins.
Cross-referencing with Nansen’s data, it becomes evident that the stablecoin liquidity on exchanges has decreased sharply from $38.5 billion to $35 billion, marking a decline of $3.5 billion. This significant outflow indicates that the majority of capital leaving these exchanges consists of stablecoins, which typically drive potential buying pressure.
When stablecoins exit the exchanges, it suggests that the market may lack the momentum for upward price movements, indicating that investors are hesitant to increase their portfolio allocations.
Additionally, BlackRock has executed its second major outflow in 2024, with total Bitcoin holdings surpassing 340,000 BTC. Recent data from CryptoQuant reveals that an address linked to BlackRock's ETF withdrew 256 BTC, marking a notable withdrawal.
This withdrawal trend raises concerns among retail investors, especially as BlackRock's accumulation appears to have slowed since early 2024.
Coinglass’s ETF Net Inflow data shows that during the first five trading days of October, there were negative inflows on three occasions, reflecting caution among Bitcoin ETF investors. If the trend of stablecoin outflows continues and Bitcoin balances in ETFs decline, significant gains in October may be unlikely. Nevertheless, many analysts maintain a positive outlook for Bitcoin in Q4.
