El Salvador President Nayib Bukele took a victory lap on Monday after the Bank of England’s British pound rapidly depreciated against the dollar. The institution has since resumed quantitative easing. Its action marks a clear pivot that many in the Bitcoin community predicted central banks would be forced into months in advance. Bukele’s Callout Bukele tagged the Bank of England with a triumphant “Told you,” over Twitter, scoring over 14,000 like and 2000 retweets from his followers. His brief comment…
The number of bitcoins (BTC) stored on the exchange platforms is at its lowest. That’s pretty good news for the rest of the bull run if Glassnode is to be believed.
Investors withdraw their bitcoins (BTC) from exchanges
Figures from the Glassnode data aggregator show that bitcoins stored on exchanges have hit a shallow threshold. The numbers have not hit this level since October 2018, more than two years ago. It is this analysis by Glassnode that indicates the current expectations of Bitcoin investors.
When there is an expectation of selling, investors keep their bitcoins on exchanges. However, when the desire is to Hodl, funds are withdrawn from exchanges to secure spaces like cold wallets. This trend could, therefore, indicate that investors are ready to keep their bitcoins for the longterm. This is crucial as the price of Bitcoin has pumped in recent weeks.
A difference from the last bull run
The current trend of investors withdrawing their Bitcoins from exchanges is noticeable different from the last bull run. In 2017 the number of bitcoins stored on exchanges actually skyrocketed. Investors had sent their BTC to exchanges so they could quickly sell as the price reached record levels. This surge subsequently caused the price of Bitcoin to fall at the beginning of 2018.
The conclusion to be drawn is positive, and BTC’s withdrawal from exchanges is a ‘’bullish’’ sign for Bitcoin. This suggests that investors believe the asset price has not peaked despite approaching its all-high. The current greed index is high, and the market sentiments are quite optimistic.
As is often the case in the middle of a bull run, analysts have begun to make their predictions. Some weeks back, the management of Citibank predicted that Bitcoin could hit $300,000 before 2022. There has also been a huge surge of institutions towards Bitcoin, and the current bullish run shows no signs of stopping. At the time of publication, Bitcoin is valued at $19,200 and has about $350 million.