Kraken Sees $141M Bitcoin Outflow Hours Before Fed Minutes Drop

Key Insights:

• Large Bitcoin USD withdrawals from Kraken reduce exchange liquidity significantly.
• Fed minutes anticipation influences Bitcoin market activity and sentiment.
• Analyst identifies bullish Bitcoin patterns targeting new all-time highs.

The Bitcoin USD price demonstrated notable fluctuations over the past week, starting near $107,000 on May 22 and rising sharply to a peak of nearly $111,800 on May 23. Following this surge, the cryptocurrency retreated steadily, dropping back toward $107,000 by May 25.

From that point, Bitcoin staged a rebound, climbing back to about $110,000 on May 27 before closing around $108,000 on May 28. This short-term price activity provides context for deeper market movements driven by large exchange outflows and macroeconomic factors.

Bitcoin USD Withdrawals from Kraken and Exchange Liquidity Impact

Large Bitcoin transfers from exchanges have drawn market attention, particularly from Kraken. According to Whale Alert data, two sizable transactions occurred in close succession: one involving 581 BTC valued at approximately $63.4 million, and another moving 716 BTC worth roughly $77.9 million.

Both transfers moved Bitcoin from Kraken to unknown wallets. Such movement typically signals a transfer from an exchange to a cold or private wallet. It reduced the immediate supply of Bitcoin available for trading on that particular exchange, in this case, Kraken.

This reduction in exchange liquidity can affect market dynamics. With fewer coins available for sale, the potential selling pressure decreases, which may lead to increased price stability or upward momentum if demand persists.

IntoTheBlock data confirms a rising trend in exchange outflows, noting a 61.97% increase over 24 hours, a 21.27% rise over seven days, and an impressive 140.17% surge across 30 days. These spikes in outflow volume often coincide with price stability or upward trends, reflecting holders’ preference for long-term storage.

Federal Open Market Committee (FOMC) minutes

Moreover, these withdrawals come shortly before the release of Federal Open Market Committee (FOMC) minutes from the May meeting. Market participants await these minutes for indications on the Fed’s stance regarding interest rates and inflation.

Earlier in the month, the Fed chose to maintain rates, with Chairman Jerome Powell referencing the potential inflationary impact of the ongoing U.S.-China trade tensions. The minutes are expected to echo this caution while acknowledging a delay in tariff implementation, possibly softening any hawkish signals.

Market Response to Federal Reserve Developments

Investors’ reactions to Federal Reserve communications influence Bitcoin’s movement significantly. The anticipation of the FOMC minutes has coincided with notable Bitcoin activity, including the aforementioned exchange outflows. Traders and analysts monitor these developments closely, as monetary policy affects liquidity and risk appetite.

The potential delay in tariff enforcement appears to temper immediate concerns over inflationary pressure. This development may reduce the urgency for further interest rate hikes in the near term. Consequently, the Bitcoin market could reflect a more stable or optimistic sentiment amid easing macroeconomic uncertainties. Such conditions often encourage holders to secure assets off exchanges, which aligns with the recent surge in Bitcoin withdrawals from Kraken.

Bitcoin USD Bullish Patterns Targeting New Highs

Meanwhile, according to analyst Mags, several bullish signals on Bitcoin’s chart suggest that new records could be reached soon. The formations in question are an ascending triangle and a rising wedge and they both link important price points from history.

Bitcoin’s major peaks from the December 2017 all-time high, through the November 2021 high and toward an expected 2025 or 2026 peak are all on the upper ascending line.

Secondly, the ascending triangle is created by two main trendlines. Support has come from the lower trendline on several occasions in late 2022. The trendline gave Bitcoin a floor at $15,700 in November 2022, $25,000 in September 2023 and just under $76,000 in April 2025. The high end of Bitcoin’s movement has kept prices from advancing beyond $35,000 and $75,000 this year and has capped rallies above $108,000 in recent months.

From what is seen, Bitcoin may be setting its sights on a new range of $295,000 to $300,000 toward the middle to end of 2025.