More than 20,000 BTC has been pulled from major digital asset trading platforms in four days. That is according to the latest data shared by senior crypto trader Ali Martinez.
BTC exchange reserve decreasing
Data reported by Martinez showed that investors withdrew more than 20,000 Bitcoin worth over $2 billion within the last four days. The metrics hinted at an interesting trend suggesting that investors are deciding to buy and hold their tokens for the long term rather than preparing to sell.
This trend indicates a steady decrease in Bitcoin’s exchange reserves as over 2 billion in BTC pulled off exchanges in the past 96 hours. This decreased reserve of Bitcoin on exchanges can compress liquidity, which could stabilize or bolster prices if the purchasing frenzy remains consistent. When tokens’ supply sees a reduction, expanded purchasing activity could have a direct effect on BTC prices.
Bitcoin has displayed an impressive bounce back since last week after the announcement of a favorable inflation index. The performance of the largest cryptocurrency currently is incredible in terms of its market capitalization, which surged to $2.05 trillion after a 0.31% increase over the previous day.
With the recent increase in Bitcoin accumulations, many holders are taking advantage of buying the dip anticipating a price rise after Trump’s swearing-in. This trend has created pressure on BTC prices as multiple traders opt to embrace buy and hold.
Bitcoin price updates
BTC has presented recovery indicators following its recent declines, now trying to maintain its price above the $100,000 mark. The flagship cryptocurrency recently encountered significant challenges, which saw its prices drop below $90,000 the early previous week.
However, last week, Bitcoin made an incredible 9% recovery from a low of $89,164 after an announcement of a positive inflation report that boosted investors’ risk appetite. On-chain data shows that Bitcoin’s fundamental remains robust, signifying a potential uptrend in the coming months.
BTC is currently trading at $104,459, reflecting a 1.4% rise over yesterday. Its price has been up 11.10% in the last seven days, indicating its renewed bullishness. It seems this could be the start of a greater rally for BTC over the next 12 months.
On Thursday, January 16, CryptoQuant released fresh data indicating a projection of a potential price movement in 2025. The data predicted that the BTC price is likely to rise to a high of at least $145,000 to $249,000 during this year. This represents a 45%-150% annual price rise for the biggest digital asset.
Source: https://blockchainreporter.net/btc-withdrawals-rise-as-investors-draw-2-billion-from-exchanges-within-the-last-four-days/
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