• Major crypto exchanges witness over $580 million in Bitcoin outflows, signaling a potential bullish trend as traders move assets to secure storage in anticipation of price increases.
• The surge in Bitcoin’s price to $35,000, its highest in a year, triggers the liquidation of roughly $400 million in short positions and pushes the total crypto market cap beyond $1.25 trillion.

In a remarkable market development, Bitcoin (BTC) experienced a surge, briefly hitting the $35,000 mark for the first time in a year. Coinciding with this price increase, major crypto exchanges reported substantial net outflows on October 24, indicating a prevalent bullish sentiment among traders.

Traders Optimistic as Bitcoin Outflows Surge

Data from the renowned crypto analytics firm CoinGlass revealed that Binance led the way in outflows, witnessing over $500 million moving away from the platform in the last 24 hours. Crypto.com and OKX followed, with outflows of $49.4 million and $31 million, respectively. Most other exchanges reported outflows under $20 million.

This movement of funds away from exchanges, traditionally interpreted as a bullish signal, suggests traders are transferring their assets to more secure storage in anticipation of a continued price increase. This trend differs significantly from the “bank run” fears that emerged after the FTX collapse in November 2022, during which withdrawals were driven more by panic than positive market expectations. Glassnode data corroborates this interpretation, showing Bitcoin outflows from exchanges have risen in tandem with BTC’s price surge.

With the recent uptick in Bitcoin’s value, the market saw the liquidation of approximately $400 million in short positions, affecting 94,755 traders. The largest single liquidation order occurred on Binance, valued at $9.98 million.

Market Value to Realized Value (MVRV) Ratio in Focus

On-chain analysts have also turned their attention to the Market Value to Realized Value (MVRV) ratio, a crucial metric comparing an asset’s market value to its realized value. By dividing a cryptocurrency’s market capitalization by its realized capitalization, with realized price being the average price at which each unit last moved on-chain, analysts gain insights into market conditions. The MVRV ratio currently stands at 1.47, closely approaching the 1.5 level seen during the last bull run.

As these outflows align with Bitcoin‘s price surge, the total crypto market cap has experienced a 7.3% increase in the last 24 hours, reaching $1.25 trillion—its highest valuation since April. Market speculation around the anticipated launch of a spot Bitcoin exchange-traded fund is believed to be a driving force behind this surge, fuelling positive market sentiments and high expectations.