After setting new levels and achieving a new all-time high around $123,000, demand for Bitcoin across the global space has continued to heighten significantly.
The surging demand for Bitcoin is evident in the notable outflows witnessed by major exchanges, as whales continue to double down on Bitcoin.
On July 22, on-chain monitoring firm Whale Alert spotted a dramatic series of BTC outflows from the major U.S. exchange, Kraken, in what appears to be a strategic Bitcoin accumulation move by an institution.
According to data shared by the tracking firm, more than 25,400 BTC worth about $2.9 billion have been moved out of Kraken in less than 2 hours. While the transfer seemed strategic, it saw a series of 4,166 BTC each leave the exchange in at least seven separate transactions. Each of the transfers was worth about $495 million per BTC’s price at the time of the transaction.
Furthermore, additional notable outflows including 2,605 BTC worth about $310.9 million and 947 BTC worth $112.8 million were also spotted leaving the exchange during the period. With all the transfers headed to an unidentified destination, market watchers have expressed curiosity as to what the Bitcoin big players might be up to this time.
Although it is not certain if the series of identical transfers were controlled by a single whale, the structured nature and repetition of the transactions suggest a major whale accumulation as Bitcoin has continued to trade consistently above the major $118,000 mark.
BTC supply crunch soon?
The massive BTC withdrawals also signal institutional cold wallet redistribution or a strategic Bitcoin accumulation by an institution. It signals growing demand for Bitcoin among large businesses.
While moves like this tend to shorten Bitcoin reserves on Kraken, market participants have raised concerns about such transfers leading to a Bitcoin supply crunch in the open market.
Although the amount of Bitcoin available for purchase on exchanges has continued to decrease, consistent withdrawal from exchanges signals increased confidence among investors, positioning Bitcoin for a further bullish outlook.
While the reason behind the massive Bitcoin transfers remains uncertain, large outflows like this are indications of increased Bitcoin demand and the relentless will to continue accumulating the leading cryptocurrency among investors, projecting chances of an incoming supply shock.
