Bitcoin’s On-Chain Activity Screams Bullish: Investors Prepare
Bitcoin's on-chain activity signals a bullish trend with a record 28,000 BTC outflow; massive options expiry is set for December 29.
Recent on-chain activities are now supporting Bitcoin's bullish trend. A record outflow of over 28,000 BTC from exchanges, valued at $1.19 billion, occurred on Wednesday, marking the largest since December 14, 2022, as per Glassnode data.
These net outflows from exchanges suggest a trend of investors holding their Bitcoin for the long term. Notably, Coinbase experienced an outflow of 18,000 BTC, leading to speculation about institutional investments, especially with a potential ETF launch coming soon.
The total BTC held in exchange wallets is at its lowest since April 2018, signaling less supply pressure and a possible price rise. Currently, Bitcoin is trading at $42,700, showing a 158% increase year-to-date according to a report from CoinDesk.
In addition to the bullish signals from Bitcoin's on-chain activity, the crypto market is bracing for a significant event on December 29, as a massive batch of Bitcoin options contracts, totaling over 178,000 Bitcoins and worth $7.6 billion on Deribit alone, is set to expire.
This event is one of the largest this year, Greeks Live commented on the big annual delivery day, stating that the total of $11 billion is up from last year’s end total position of $9.8 billion. This could trigger notable market movements.
The put/call ratio on Deribit indicates a predominance of bullish sentiment, with the potential for price shifts depending on whether Bitcoin crosses key price points. This expiry comes amidst growing maturity in the crypto derivatives market, attracting more institutional investors with diverse strategies, further highlighting the evolving dynamics of the cryptocurrency sector.
