Around $2.5 billion of flagship cryptocurrency Bitcoin ($BTC) has been pulled from popular cryptocurrency exchanges at a time when the supply of BTC on these platforms is at a three-year low , suggesting the potential for a “significant” price increase.
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firm Glassnode, shared by Bitcoin Archive on Twitter, in just two weeks around 61,000 BTC worth over $2.5 billion were withdrawn from Bitcoin trading platforms. cryptocurrency.
As reported by CryptoGlobe, market watchers have suggested that BTC’s price could be “ready to rally” due to its low supply on exchanges, which for Stéphane Ouellette, Managing Director of FRNT Financial, may mean that BTC is ready to break out. He said that if there is a lot of BTC on the exchanges, then people are ready to sell.
On the other hand, when BTC is removed from exchanges and transferred to private wallets, the supply available in the market is drastically reduced, which means that increasing demand could lead to higher prices.
Bitcoin has notably traded sideways over the past few months as it appears to be stuck in a tight trading range. Despite a massive sell-off as Russia began invading Ukraine, the cryptocurrency quickly recovered to re-enter its range.
For market analysts, BTC is limited 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 taking to curb its growth.
IntoTheBlock noted that around 15,000 BTC were withdrawn from trading platforms in just 24 hours, the largest outflows seen since January 29. The company added that the last time BTC saw such a large outflow, it was “followed by a significant price rally.”
Despite the fork-related movement, some are still bullish on BTC’s long-term outlook. As CryptoGlobe reported, last week Abra CEO Bill Barhydt said he believes Bitcoin price will reach $250,000 in the future, while Pantera Capital CEO Dan Morehead , expects it to increase 10-fold over the next five years.
Bloomberg commodity strategist Mike McGlone weighed in on Bitcoin’s performance as inflation rises, interest rates rise, and Ukraine faces a full-scale invasion from Russia, and suggested that BTC would continue to “outperform” gold and the stock market.
The views and opinions expressed by the author, or anyone mentioned in this article, are for informational purposes only and do not constitute financial, investment or other advice. Investing in or trading crypto-assets involves the risk of financial loss.
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