[Analysis] "50,000 BTC withdrawn from Kraken… related whale movement is an indicator of whether a correction will occur"

Recently, a large withdrawal of Bitcoin (BTC) occurred on the Kraken exchange, attracting attention to what effect it will have on market flows.

On the 30th (local time), CryptoQuant author CryptoOnchain said, "Between the 27th and 29th, centralized exchange Bitcoin (BTC) holdings decreased by about 50,000, showing the largest short-term decline of the year. Most of this occurred at the Kraken exchange, whose holdings plunged from about 110,000 BTC to around 57,600 BTC."

The author explained that such large withdrawals can be interpreted in various scenarios, such as movement to cold wallets for security purposes, long-term accumulation by institutions, and OTC (over-the-counter) settlement.

He added, "In the short term, there is an effect of reducing sell-side volume on exchanges, which can be seen as a positive signal, but if not accompanied by additional capital inflows, whether this amount remains locked up for a long period or is released back into the market through other channels will determine price movements," and analyzed, "Ultimately, the movements of the whales that withdrew from Kraken will serve as a key indicator to gauge whether Bitcoin will undergo a short-term correction."