Bitcoin Worth $670 Million Leaves Centralized Exchanges
  The latest moves in crypto markets, in context January 28, 2022 Sponsored by  If you were forwarded this newsletter and would like to receive it, sign up here.
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Market Moves By Omkar Godbole and Shaurya Malwa Bitcoin again faced rejection near $37,500 early Friday as the futures tied to the S&P 500 dropped 0.9%, signaling continued risk aversion. Ether and the wider crypto market also nursed losses, with Terra's LUNA falling to two-month lows under $50.
Blockchain data provided by Glassnode shows that more than 18,000 bitcoin worth $670 million left centralized exchanges on Thursday, registering the biggest single-day net outflow in over a month. Crypto exchange BitMEX alone saw net outflow of over 9,500 bitcoins.
Most investors prefer to have direct custody of coins when they intend to hold them for a longer term. Thus, net outflows are widely taken to represent bullish sentiment.
Increased outflow perhaps indicates that investors have stepped up bitcoin accumulation, shrugging off prospects of faster interest-rate hikes from the U.S. Federal Reserve.  Bitcoin's net exchange flows (Source: Glassnode) Outflows do not necessarily imply passive investing and investors often tokenize coins drained from centralized exchanges on the Ethereum blockchain to earn extra yield. The number of wrapped bitcoin (WBTC) has increased by 13,000 this year, extending the year-long rising trend. WBTC is the first ERC20 token backed 1:1 with bitcoin and represents the top cryptocurrency on the Ethereum network.
Whatever the case, increased outflows mean fewer coins available for sale on exchanges and a better chance of the market going up.
Tokens related to Wonderland developer plunge
Prices of tokens created by Daniele Sestagalli, one of the developers of Avalanche-based money market Wonderland, fell as much as 22% in the past 24 hours amid drama around Wonderland's cofounders.
In the past 24 hours, Popsicle Finance's ICE fell 22%, Wonderland's TIME fell 15%, and Abracadabra's SPELL dropped 15% to lead losses among altcoins in an otherwise sideways crypto market, data showed.
The plunge came after Wonderland's pseudonymous co-founder "Sifu" was revealed to be Michael Patryn, one of the cofounders of failed crypto exchange QuadrigaCX, as reported.
Read the full story here: Tokens Related to Wonderland Developer Plunge After QuadrigaCX Revelation
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Crypto Prices Bitcoin (BTC) See the latest price here Ether (ETH) See the latest price here The following are the biggest movers in the CoinDesk 20 digital assets over the past 24 hours: Biggest Gainers:
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Technician's Take By Omkar Godbole Terra's LUNA Slides  Ether's daily chart (Source: TradingView) Luna, the native token of the Terra blockchain, continues to lose ground, having suffered a bearish head-and-shoulders breakdown early this month.
The 200-day moving average located at $45 may offer support.
ICYMI In case you missed it, here are the most recent episodes of "First Mover" on CoinDesk TV: Rio de Janeiro Planning to Allocate 1% of Treasury Reserves to Crypto, Voice from China: Digital Yuan to Face International Audience at Beijing Winter Olympic Games Next Week
Disclaimer: The information presented in this message is intended as a news item that provides a brief summary of various events and developments that affect, or that might in the future affect, the value of one or more of the cryptocurrencies described above. The information contained in this message, and any information liked through the items contained herein, is not intended to provide sufficient information to form the basis for an investment decision. The information presented herein is accurate only as of its date, and it was not prepared by a research analyst or other investment professional. You should seek additional information regarding the merits and risks of investing in any cryptocurrency before deciding to purchase or sell any such instruments.
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