The latest cryptocurrency news, particularly concerning Bitcoin's performance in October, indicated considerable weakness for bullish sentiment. This has consequently introduced more uncertainty about the prospects for Bitcoin (BTC USD) price now that November has arrived. Despite rising uncertainty, recent crypto news revealed that top Bitcoin whales have been accumulating. According to Glassnode data, BTC addresses holding between 10,000 and 100,000 BTC have been actively buying during price dips.
Previous data showed that large holders had been taking profits before October, especially during the bullish months. This latest data confirms that top holders were taking advantage of discounted prices, a clear sign that they anticipate more upside in the coming days. According to the data, this particular class of top whales acquired over 52,500 BTC in October, an amount equivalent to over $5 billion. This was one of the significant indicators pointing towards heavy accumulation in October. Some analysts speculated that most of the top-holder addresses were institutions, given their financial capacity. Tether might be one of these entities, following reports that it acquired Bitcoin worth $1 billion on Thursday.
MEXC Exchange Outflows Align With Bullish Crypto News
MEXC, one of the top crypto exchanges globally, has experienced significant BTC outflows throughout the year. In recent crypto news, a CryptoQuant analysis revealed that the exchange registered a substantial spike in BTC withdrawals, particularly towards the end of October.
The analysis noted that exchange outflows might be attributed to accumulation or a rising appetite for self-custody. Regardless of the reason, these outflows confirmed significant demand for the cryptocurrency and reflected the sustained downtrend observed in the Bitcoin exchange reserves chart. The latter extended its decline towards the end of October, aligning with the exchange outflows during the month. Bitcoin (BTC USD) large holder flows demonstrated some accumulation in the last 24 hours, with whales acquiring approximately $4.2 million worth of buys across Binance and Coinbase spot markets. However, demand from this whale category remained relatively weak, highlighting a lack of widespread excitement. Derivatives trading still leaned in favor of the bears, underscoring a cautious investor sentiment.
Liquidity Build-up Signals Investor Readiness
Beyond whale activity and accumulation by large addresses in October, analysts have been closely monitoring liquidity flows in the market. Bitcoin stablecoin inflows recently registered a significant spike. Data revealed that Binance received roughly $1.6 billion in stablecoin inflows on October 31st. Such movements have historically preceded major price shifts.
Analysts believe this surge in stablecoin flows may indicate that smart money is preparing to re-enter the market. In addition to rising stablecoin liquidity, the volatility and heavy liquidations in October led to a substantial liquidation reset. This could explain the current market hesitation and uncertainty. However, it also means that the spot segment has an opportunity to lead the market without the risk of liquidation-induced volatility. Bitcoin (BTC USD) price pushed back above $110,000 in the last 24 hours as part of its recovery attempts following a bearish last week of October. Market sentiment also improved slightly but remained notably in the fear territory.