Around $2.5 billion worth of the flagship cryptocurrency Bitcoin ($BTC) have been moved off of popular cryptocurrency exchanges at a time in which the supply of BTC at these platforms reaches a three-year low, suggesting potential for a “significant” price rise.
According to data from on-chain analytics firm Glassnode, shared by Bitcoin Archive on Twitter, in just two weeks around 61,000 BTC worth over $2.5 billion were taken off of cryptocurrency trading platforms.
As CryptoGlobe reported, market observers have suggested the price of BTC could be “ready to rally” based on its low supply on exchanges, which to Stephane Ouellette, chief executive of FRNT Financial, may mean BTC is ready to break out. He said that if “there’s a lot of BTC on exchanges, then people are ready to sell.”
On the other hand, when BTC is taken off of exchanges and moved into private wallets there’s a significantly smaller supply available on the marketplace, which means rising demand could lead to higher prices.
Bitcoin has notably been trading sideways over the last few months as it’s seemingly stuck within a tight trading range. Despite enduring a sell-off at the tie Russia started invading Ukraine, the cryptocurrency quickly recovered to re-enter its range.
To market analysts, BTC is rangebound not only because of the war in Ukraine but also because of the uncertainty surrounding rising inflation and the hawkish stance several central banks are adopting to curb its growth.
IntoTheBlock has noted around 15,000 BTC were moved off of trading platforms in just 24 hours, the largest outflows seen since January 29. The firm added that the last time BTC experienced such a large outflow it was “followed by a significant rise in price.”
Despite the range-bound movement, some are still bullish on BTC’s long-term prospects. As CryptoGlobe reported, last week Abra CEO Bill Barhydt said he believes the price of Bitcoin will hit $250,000 in the future, while Pantera Capital CEO Dan Morehead expects it to 10x in the next five years.
Bloomberg commodity strategist Mike McGlone has weighed in on Bitcoin’s performance as inflation surges, interest rates rise, and Ukraine deals with a large-scale invasion from Russia, and suggested BTC will keep “outperforming” gold and the stock market.
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The views and opinions expressed by the author, or any people mentioned in this article, are for informational purposes only, and they do not constitute financial, investment, or other advice. Investing in or trading cryptoassets comes with a risk of financial loss.
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