Bitcoin Exchange Outflow Hits Five-Week High Before Fed Decision

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Bitcoin Exchange Outflow Hits Five-Week High Before Fed Decision
PrimeXBT Editorial Team
Reviewed by PrimeXBT

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Santiment recorded the largest daily net Bitcoin outflow from exchanges in five weeks, just ahead of a Federal Reserve decision and key US data. The analytics firm named $80,000 as the level to watch, while ETF flows point to weaker institutional demand.

Santiment found that 14,942 BTC left trading platforms on net. The analytics firm said this was the largest daily net outflow in five weeks.

Outflow lands before the Fed and GDP data

The move comes before the Federal Reserve's decision on Wednesday and GDP and PCE data on Thursday. Santiment said holders moving Bitcoin off exchanges could indicate less immediate selling pressure.

However, the data also brings September's outflow into focus. On September 22, 17,755 BTC left exchanges, and Bitcoin climbed above $86,600 shortly after. The latest figure is lower, but both moves involve large amounts of coins leaving exchanges.

Santiment points to $80,000

Santiment said $80,000 is the key level to watch during the coming volatility. Holding above it could support a rebound toward $82,500 to $84,000. A decisive drop below roughly $79,000 would weaken the bullish setup, while reclaiming $82,500 after the data releases would offer stronger confirmation.

Meanwhile, crypto analyst Sykodelic believes Bitcoin could be gearing up for another major rally after reclaiming the 50-week simple moving average and the Supertrend. According to Sykodelic, this setup has appeared several times in Bitcoin's history, including 2015, 2019, 2020, and 2023. The analyst also found that the asset has never fallen back below the price where it reclaimed both levels.

ETF flows stay weak

Institutional demand for Bitcoin looks weak again. US-listed spot BTC ETFs saw $4.5 billion in outflows in June before attracting a total of $6.2 billion in August and September. October has turned negative, with these funds recording over $26 million in net outflows so far.

Source: CryptoPotato

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