"So this means that the price of BTC will rise high in the near future?"
The price of cryptocurrency king Bitcoin (BTC) currently remains below $29,000, but the digital asset has recently seen significant activity from exchange wallets.
According to crypto analyst Ali Martinez, approximately 33,000 BTC worth $924 million was removed from digital asset exchange wallets and the matter has caused excitement among the community.
Based on observations, $250 million worth of BTC was transferred out of crypto exchanges on October 16, 2023 followed by an additional $200 million on October 17.
Most of the significant outflows were directly linked to Binance and from October 14 to October 17, 2023, 16,000 BTC were released from the crypto exchange's wallets, causing the amount of BTC held to drop drastically.
However, the development was very different to the past month as nearly 30,000 BTC worth $820 million had been channeled into the central exchange before Grayscale met its legal success against the Securities and Exchange Commission (SEC).
So here it can be seen that a significant decrease in the supply of BTC on crypto exchanges can usually increase demand further pushing BTC to climb higher than its current price.
This is because if users withdraw digital assets from crypto exchanges, there is a possibility that they will be less inclined to engage in selling activities and vice versa.
As of the writing of this news, the BTC price still recorded a 0.09% decline at $28,351 in the last 24 hours with a market capital of $553 billion but still gained 5.97% over the past week.
