Bitcoin’s recent price jump above $109,000 has shown some serious strength. Interestingly, a lot of Bitcoin is leaving cryptocurrency exchanges. This isn’t necessarily a bad thing.
A Massive Bitcoin Exodus
Data from Alphractal, a cryptocurrency analytics platform, shows a huge amount of Bitcoin – 3.77 million BTC, worth a staggering $219 billion – has been withdrawn from exchanges over the past five years (since February 2020). This is more Bitcoin than exchanges currently hold.
But this isn’t a panic sell-off, according to Alphractal. Instead, it suggests investors are confident in Bitcoin’s long-term future, seeing it as a digital store of value and choosing to hold it themselves (self-custody).
What This Means for Bitcoin
Alphractal highlights a few key things about this trend:
- Long-Term Strategy (HODLing):
Investors are moving their Bitcoin to private wallets, indicating they’re in it for the long haul. They aren’t planning to sell anytime soon. - Increased Confidence: Self-custody shows strong belief in Bitcoin’s future price.
- Potential Supply Squeeze: Less Bitcoin on exchanges means less available to sell, potentially driving up the price if demand remains high. Historically, this is a very positive sign.
Price Predictions
The on-chain data, combined with positive chart patterns, has some analysts predicting a big Bitcoin rally. Trader Tardigrade, for example, forecasts a significant price increase in the coming months, potentially reaching $230,000 before a correction. This prediction is based on a technical analysis of Bitcoin’s price chart over the past 2.5 years.
