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BitMEX Sees Historic $2B+ Bitcoin Outflow as Analysts Project Imminent BTC Rebound

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BitMEX Sees Historic $2B+ Bitcoin Outflow as Analysts Project Imminent BTC Rebound


Prominent crypto exchange BitMEX has witnessed its second-largest Bitcoin outflow in history, which renowned market watchers have identified as a bullish signal.

On July 5 and 6, a staggering 23,203 BTC and 12,603 BTC flowed out of BitMEX, totaling 35,807 tokens worth approximately $2.1 billion. This massive outflow deviates significantly from the exchange’s daily average, catching the attention of seasoned market observers.

According to Joao Wedson, a data scientist and analyst at CryptoQuant, the recent outflow from BitMEX should not be overlooked.

Bitcoin outflow from BitMEXBitcoin outflow from BitMEX
Bitcoin outflow from BitMEX |CryptoQuant

Why BitMEX Outflow is Bullish for Bitcoin

Wedson noted that the exchange netflow indicator on BitMEX has consistently shown a tight correlation with Bitcoin price actions. The analyst observed that Bitcoin’s price tends to increase when the indicator turns negative.

He explained that the exodus of 35,807 Bitcoin implies that major investors are retiring their holdings for sales on other platforms. This trend weakens immediate selling pressure on BitMEX, which can stabilize or even trigger a Bitcoin surge.

Moreover, the analyst highlighted that massive withdrawals from the exchange suggest signs of accumulation where whales are betting on Bitcoin’s uptrend.

This phenomenon is attributed to BitMEX’s stature as a prominent derivatives exchange, wielding significant influence over the crypto derivatives market. 

Consequently, market watchers perceive substantial Bitcoin movements on BitMEX as strategies employed by major market participants, provoking considerable psychological ripple effects throughout the market.

As a result, Wedson stressed that the latest $2.1 billion Bitcoin outflow from the exchange should not be neglected, as such events have historically proven to be reliable precursors to Bitcoin price surges.

As of the time of reporting, Bitcoin has stabilized around $57,706, following a mini rally that propelled it to an intraday high of $59,416. 

Is BitMEX the Latest Outflow a Bullish Signal?

Meanwhile, in response to the analysis, BitMEX clarified that the massive Bitcoin outflow resulted from its wallet upgrade. Specifically, the exchange migrated its Insurance Fund denominated in BTC tokens to new Bitcoin wallets. 

The exchange announced this planned transfer on June 21 to avoid any misinterpretations that often accompany large fund transfers. BitMEX completed the transfer two weeks after the initial announcement. 

Accordingly, the exchange assured that the on-chain transactions did not impact users’ trading activities or withdrawal frequencies, effectively countering the bullish suggestion.

Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.

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