Share this article
Bitcoin Worth $670M Leaves Centralized Exchanges After Hawkish Fed Comments
Most investors prefer to have direct custody of coins when they intend to hold them for a longer term.
Updated May 11, 2023, 6:40 p.m. Published Jan 28, 2022, 7:45 a.m.
Crypto investors seem to have stepped up bitcoin accumulation, shrugging off prospects of faster interest-rate hikes from the U.S. Federal Reserve.
Blockchain data provided by Glassnode shows that more than 18,000 bitcoin worth $670 million left centralized exchanges on Thursday, registering the biggest single-day net outflow in over a month. Crypto exchange BitMEX alone saw net outflow of over 9,500 bitcoins.
STORY CONTINUES BELOW
Don't miss another story.Subscribe to the Crypto Daybook Americas Newsletter today. See all newsletters
Most investors prefer to have direct custody of coins when they intend to hold them for a longer term. Thus, net outflows are widely taken to represent bullish sentiment.
Outflows do not necessarily imply passive investing and investors often tokenize coins drained from centralized exchanges on the Ethereum blockchain to earn extra yield. The number of wrapped bitcoin (wBTC) has increased by 13,000 this year, extending the year-long rising trend. WBTC is the first ERC-20 token backed 1:1 with bitcoin and represents the top cryptocurrency on the Ethereum network.
Whatever the case, increased outflows mean fewer coins available for sale on exchanges and a better chance of the market going up.
On Wednesday, the Fed, through the Federal Open Market Committee. set the stage for a more aggressive withdrawal of liquidity to tame high inflation. The Fed fund futures have now priced in five rate hikes of 0.25% each for 2022, up from four ahead of Wednesday's FOMC meeting.
Bitcoin and other risk assets with fortunes tied to centralized liquidity are likely to remain under pressure with the Fed focused on fighting inflation, analysts told CoinDesk.
At press time, bitcoin was trading unchanged on the day near $37,000.
More For You
What to know:
- As of October 2025, GoPlus has generated $4.7M in total revenue across its product lines. The GoPlus App is the primary revenue driver, contributing $2.5M (approx. 53%), followed by the SafeToken Protocol at $1.7M.
- GoPlus Intelligence's Token Security API averaged 717 million monthly calls year-to-date in 2025 , with a peak of nearly 1 billion calls in February 2025. Total blockchain-level requests, including transaction simulations, averaged an additional 350 million per month.
- Since its January 2025 launch , the $GPS token has registered over $5B in total spot volume and $10B in derivatives volume in 2025. Monthly spot volume peaked in March 2025 at over $1.1B , while derivatives volume peaked the same month at over $4B.
More For You
Bulls beware — BofA Fund Manager Survey flashing contrarian sell signal
Bitcoin could see further declines if traditional markets sharply pull back, or just possibly a broad tumble in stocks could set the stage for a bull run in crypto.
What to know:
- Investor cash allocations fell to a record-low 3.3%, according to the Bank of America's latest Fund Manager Survey, while exposure to equities and commodities reached the highest levels since early 2022.
- Optimism about a soft landing and rising profits pushed sentiment to its strongest point since mid-2021.
- A decline in traditional markets might seem to point to further losses in crypto, but it could also be a bullish signal.
Top Stories
