- Withdrawals of Bitcoin from exchanges have reached a new high, with $2. 3 billion leaving in just one day, the most in over five years.
- Even though big investors are taking their time to come back, the movement of Bitcoin out of reserves shows a big change.
- Glassnode data showed that this pattern is very similar to something that happened in June 2021, when big withdrawals of money from investments showed that investors were making changes.
People are taking out a lot of Bitcoin from exchanges, which is a sign that there could be a good future for the cryptocurrency. As the price of BTC gets close to breaking all-time highs, the numbers show a pattern similar to what happened in 2021, when there were big financial changes in the world of cryptocurrency. James Van Straten, who watches closely and studies things for CryptoSlate, noticed that a lot of Bitcoin was taken out of exchanges on March 3.
According to Glassnode, on March 1st, people took $2 billion worth of Bitcoin from exchanges. Van Straten responded by saying, “I have never seen anything like this before,” which indicates that this event is very unusual. On that Friday, people took out more than $2. 3 billion from their accounts, which was one of the biggest withdrawals in over five years. This shows us that even though most buyers aren’t purchasing, there is a lot of activity in the Bitcoin market, with large amounts of Bitcoin being taken out of reserves.
Surprisingly, people are comparing these recent withdrawals to the large amounts of money taken out on June 28-29, 2021, because both times had a lot of money taken out. The story continues as Van Straten mentions that Bitcoin exchange-traded funds from the United States were involved in the movement, except for about $200 million that went to Coinbase Pro, the custodian. Binance and Coinbase had a lot of money leaving their platforms, with Binance losing about $400 million and the rest going to Coinbase. The analyst found it interesting that Binance’s money going out didn’t come from ETF trading.
According to Glassnode, the amount of Bitcoin available to buy on big trading websites dropped to 2,286,347 BTC ($142. 5 billion) on March 2. This is the lowest it has been since March 2018, when the value of Bitcoin was about $8,000. The decrease in Bitcoin available on exchanges shows that the cryptocurrency market is changing.
At the same time that there are fewer Bitcoins available to buy on exchanges, it looks like more new people are investing in Bitcoin. Research on CryptoQuant showed that new coins are being used more and older coins that were not used for a long time are now being used again. This trend shows that more new people are interested in investing, which could lead to a big increase in stock prices.
The positive feeling about Bitcoin going up is also because it might reach $180,000. This is based on how much it has gone up before and how the market is doing right now. Caleb Franzen, who started Cubic Analytics, found a rare signal that shows Bitcoin is a good investment. It’s only happened four times in three years. This tool called an oscillator can tell us how strong Bitcoin’s price trends are. It has given early signals for bull markets in 2013, 2016, and 2020. While past performance does not predict future outcomes, we can’t ignore the consistent signals that indicate a rise in the market.
Also, the Relative Strength Index (RSI), which is used to measure how fast the price of Bitcoin is changing, indicates that Bitcoin is being bought a lot on a daily basis. This usually happens during the strongest parts of a bull market. The RSI readings every month show that people are feeling good about Bitcoin. This means that the price of Bitcoin will probably keep going up.
Warning: This information is not advice for making trades.
