Bitcoin has seen a surge in activity, breaking above $46,000 twice in 24 hours, indicating a bullish return for cryptocurrencies led by Bitcoin. Bitcoin investors are preparing for the upcoming halving event by withdrawing their coins from exchanges.
Bitcoin Supply on Exchanges Drops to Lowest Level Since 2017
- Long-term Bitcoin holders have been holding their coins for over a year, with 69% of holders holding for longer than a year.
- The supply of Bitcoin on exchanges has dropped to 5.3% of the total circulating supply, the lowest level since December 2017.
- This indicates that 94.7% of the Bitcoin supply is currently in private custody.
Whale Transactions Show Large BTC Outflows from Exchanges
- Whale transaction tracker Whale Alerts has reported significant BTC transfers from exchanges to private wallets.
- Institutional demand for Bitcoin has increased since the approval of spot Bitcoin ETFs.
Significance of Bitcoin Withdrawals from Exchanges
- Withdrawals from exchanges reduce the amount of Bitcoin readily available for sale, leading to less selling pressure.
- This can contribute to an increase in Bitcoin’s value based on supply and demand.
Bitcoin’s Price Outlook
- Bitcoin is currently trading at $46,250, up 4% in the past 24 hours and 7.15% in the past seven days.
- With the ongoing accumulation strategy, Bitcoin is aiming to reach the $50,000 mark soon.
