Bitcoin Withdrawals from Exchanges Surge to a 17-Month High

New data from Glassnode reveals that Bitcoin (BTC) withdrawals from crypto exchanges have hit a 17-month high of 2,288.125.

The on-chain metrics platform added that the previous high was witnessed on 26 November 2020. Per the analysis:

“Number of Bitcoin exchange withdrawals (1d MA) just reached a 17-month high of 2,288.125. A previous 17-month high of 2,265.875 was observed on 26 November 2020.”

The surge in these BTC withdrawals could be attributed to the fact that investors are cashing in their profits after the price of the king of crypto hit a new all-time high of more than $19,800 on Nov 30. 

The digital asset pushed past $19,780 on certain exchanges and even hit $19,844 as it approached the crucial $20,000 level. This price rally is being witnessed because institutional investors, such as Stone Ridge Asset Management, MicroStrategy, Square, and Grayscale, are pouring in huge investments.

For instance, Square bought 4,709 Bitcoins for $50 million in October based on its inclination towards cryptocurrencies being instruments of economic empowerment, which provide an avenue to participate in the global monetary system. 

The record-breaking BTC withdrawals could be linked to holding in cold storage wallets as investors’ confidence in this digital asset continues to grow by the day. 

For instance, on-chain analytics provider Santiment disclosed in mid-November that Bitcoin whales still had confidence in the leading cryptocurrency because crypto wallets holding at least 10,000 BTC had reached a record high of 11. 

The high BTC withdrawals from exchanges come at a time when leading Asian crypto exchange OKEx experienced a Bitcoin exodus after it resumed withdrawal services on Nov 26. Users had been subjected to weeks of uncertainty about the fate of their locked-up funds after one of its private key holders decided to cooperate with a public security firm concerning an ongoing investigation.