A few weeks later, institutional investors returned to cryptocurrencies and nearly $2.8 billion in Bitcoin (BTC) was withdrawn from cryptocurrency exchanges yesterday morning. So, is this a harbinger of a Bitcoin bull rally?
According to blockchain data provider Glassnode, the supply on Bitcoin exchanges has dropped by 70,328 BTC; This is the most significant stock market net outflow since November 2020. With 70,328 BTC leaving the exchanges in a single day, it marks a resumption of demand as Bitcoin tests the upper end of its trading range once again.
The firm, which tracks the movements of exchanges such as Binance, Coinbase, Kraken, and KuCoin, among others, reveals that exchange balances returned to levels last seen in mid-May, just before Bitcoin began to pull back from its all-time high of $64,500.
As we reported yesterday, 13,820 Bitcoin (BTC) was moved from the world’s most important cryptocurrency exchange Binance. It is stated that this transfer is the largest BTC withdrawal from Binance since April 19th.
Stock metrics are based on data on the total number of exchange addresses stored, which Glassnode continually updates using data science and statistical information that changes over time. As a result, these measures are variable. The data is stable, but the most recent data points, in particular, are prone to minor changes as time progresses. Despite concerns about the intensity of the increase this week, statistics on Thursday showed real demand for BTC.
Why Did Bitcoin Price Rise?
Price increases indicate that selling pressure is not continuing its momentum and buyers are continuing to buy. During a conversation with Twitter CEO Jack Dorsey, Tesla CEO Elon Musk revealed that SpaceX owns holdings and Bitcoin in addition to Tesla. Musk also stated that Tesla can continue to receive payments with BTC. This opened a bullish door in BTC.
According to CoinMarketCap.com, BTC fell after hitting $40,600 earlier this week. However, after bottoming out around $38,800, Bitcoin has bounced back to the $40,000 level and is now in this region.