In the past few weeks, the price of Bitcoin hit a record high of $73,000. Since then, it has clearly gone down and has stayed mostly identical since mid-March. All eyes are on the Bitcoin world right now, though, because the much-anticipated split event is coming up in less than two weeks.
Recent on-chain monitoring shows that the amount of BTC stored on cryptocurrency exchanges has been slowly going down over the past few months. People have made guesses about what this trend might mean for the price of BTC in the short and long run.
Bitcoin Outflow, Martinez Reports.
In the last month, a lot of Bitcoin has left exchange wallets. A well-known bitcoin expert named Ali Martinez called attention to this change. Based on Glassnode’s Balance on Exchanges metric, which shows how much BTC is held in all exchange accounts, this was noticed.
If this number goes down, it means that buyers are taking more BTC
out of exchanges that are controlled than putting it in. Martinez says that during this time, almost 111,000 Bitcoins, which is about $7.55 billion, have been swapped out of known exchange funds. A large outflow like this generally means that investors’ views on Bitcoin have changed in a significant manner.
The exact reasons for this huge rise in BTC are still unknown, but the trend shows that investors are becoming more confident. This means that people who own Bitcoins would probably rather keep them for a long time than sell them fast.
The amount of BTC traded on exchanges keeps going down, which could lead to a rise in the price of BTC. If the supply of BTC on controlled exchanges is regularly lowered, it could cause a “supply crunch,” in which demand is higher than supply and the price of BTC goes up.
The upcoming “halving” event on April 18, 2024, is another thing that could cause the price of BTC to go up. The value of BTC is expected to rise because of this event, which will lower the number of Bitcoins being made and cut miners’ rewards in half.
While this was being written, the price of BTC was about $69,537, up 2.7% from the day before.
