24K BTC leaves exchanges as Bitcoin struggles below $87K – Bullish or bearish?

The current crypto market condition is not going that strong, with the global cryptocurrency market cap trading at $2.92 trillion at press time after a drop of 2.7% in the past 24 hours.

Yet, Bitcoin [BTC] stood strong as it recorded its largest net exchange outflow in seven months, with approximately 24,073 BTC leaving cryptocurrency exchanges in a single day on the 5th of October.

This was the biggest one-day net withdrawal since the 1st of March, suggesting that a significant amount of Bitcoin is moving away from centralized exchanges and into private wallets, or custody solutions. 

At the same time, the amount of Bitcoin held on exchanges declined to roughly 6.50% of the total BTC supply, indicating that a relatively smaller portion of the available Bitcoin is immediately accessible for trading.

Market conditions paint a concerning picture

This comes as Bitcoin was trading $83,654.15 at press time after dropping from around the $85,000 level. The chart below further indicates that BTC has seen repeated rejections near $87K, which are being offset by higher lows.

While weak U.S. payroll growth has reduced expectations for aggressive Fed tightening, elevated Treasury yields – with the 10-year above 5.3% and 30-year above 5.6% – continue to weigh on Bitcoin.