Bullish Sentiment Grows as Centralized Exchanges See Record Outflows in 12 Months

cryptonews.com:

Cryptocurrency traders maintain a bullish drive to end the year with another positive on-chain metric going into 2024 as favorable market forces boost optimism.

Data from blockchain analytics firm, Glassnode shows over $1.1 billion net outflows from centralized exchanges as Bitcoin (BTC) bulls expect more highs into the new year. 

Trading activity on Dec 27 records over 28,000 BTC transferred out of centralized exchanges marking the largest Bitcoin exits since Dec 14, 2022, a new 12-month high.

The move comes as the asset hovers near $43,000 following a month of huge gains driven by cooling inflationary measures taken by the Feds and the widespread anticipation for a spot Bitcoin ETF approval by the United States Securities and Exchange Commission (SEC).

Traditionally, net outflows represent an upward sentiment as most traders are keen on holding their assets for longer periods out of centralized exchanges while inflows to exchanges point to a potential sale.

This holding strategy can be seen across bear and bull cycles over the years leading to analysts predicting movements as a result. According to the data, Coinbase posted outflows of over 18,000 BTC as investors look long-term in their cryptocurrency exposure. 

Coinbase is listed as the custodian for nine Bitcoin ETF applications in the United States with its community predicting an imminent approval. Furthermore, Coinbase is listed on NASDAQ opening it to a wide range of institutional investors some of whom are keen on entering the market directly through an ETF. 

Per the data, Bitcoin on exchanges now stands at 2,327,025 BTC the lowest point since April 2018 as the asset continues its upward movement poised with strong fundamentals into the new year. 

The massive inflows