Bitcoin exchange outflows have reached catastrophic levels. In an on-chain data analytics service, exchange outflows of this magnitude have only been seen a few times.
Bitcoin volatility has lessened since recouping losses in Q1 2022, with just minor fluctuations in the previous few days. From March 22nd to March 30th, the asset had a week of positive momentum. On the other hand, the asset has moved with a lot of uncertainty and few shake-offs. While Bitcoin bulls want to see a run-up above $50k, several reasons might stymie the digital asset’s progress. Several investors have remained cautious in the face of predicted Fed rate rises, the Ukraine crisis, and increasingly severe EU rules.
On the other hand, data has revealed significant upside for Bitcoin bulls. According to the on-chain analytics outfit, average monthly exchange outflows have reached 96.2k BTC. Such a volume is unusual. According to history, the last time we saw it was at the end of March 2020.
Notably, the outflow level is linked to the asset’s formation of a price bottom, which resulted in big gains in the fourth quarter of 2020. While this might be a similar scenario, it could take some time to unfold.
PlanB feels Bitcoin is now undervalued, according to ZyCrypto, a notable Bitcoin analyst and developer of the famed S2F model. “Bitcoin is at a 55 percent discount right now,” the expert noted. He added that the next mining incentive halving was approaching, and unexpected market turbulence was not out of the question. Glassnode’s recent discoveries appear to back up this theory. However, not everyone is optimistic about the asset class, at least not this year. Due to regulatory uncertainties surrounding emerging economies, Mike Novogratz recently warned investors not to anticipate big returns this year.
Bitcoin is now down 0.96 percent on the day, trading at $46,400 with an $883 billion market capitalization.
Cryptocurrencies have evolved beyond Bitcoin, giving rise to a new wave of digital assets known as altcoins. These alternative coins…
Key Points Sweden's economy contracted by 0.1% in Q1 2024, defying the expected 0.2% growth. March saw a 0.4% drop…
Key Points Bitcoin recently reported at $62,528, with a historical peak near $73,000. Estimates range from $70,000 by March to…
Key Points: S&P 500 achieved its best weekly performance since November, rising 2.7% and reversing previous downturns. 80% of S&P…
Key Points EUR/USD is trading at 1.0710, boosted by a dip in the US Dollar Index below 106.00. Fed is…
Key Points Oil prices declined as Brent crude and WTI futures fell, erasing gains from the previous Friday. Israel-Hamas talks…
This website uses cookies.