The recent surge in the cryptocurrency market has been accompanied by a surge in bullish sentiment across the industry. This increased optimism has been largely bolstered by the growing number of centralized exchanges seeing record outflows of cryptocurrency over the last twelve months. Since the beginning of 2021, over $15 billion in assets have been moved out of top exchanges like Binance and Coinbase into wallets. Analysts believe this is a sign of users hodling crypto for the long term, considering that the majority of these transfers are for amounts greater than $50,000.
The drastic increase in outflows from centralized exchanges has coincided with a gradual increase in Bitcoin’s price, fueling further confidence in its longer term prospects. Investors are viewing the entire sector in an increasingly positive light, and with the positive sentiment, many believe that prices may continue to rise. As such, the crypto ecosystem as a whole is seeing a large influx of retail and institutional investors, increasing liquidity and volume. This influx has been partially attributed to traditional platforms like PayPal entering the space and providing retail investors with easier access to digital assets. With these factors in play, the crypto market appears set to keep up its upward trajectory in the near future.
Bullish Sentiment Grows as Centralized Exchanges See Record Outflows in 12 Months
