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The volume of the outflow of cryptocurrency from exchanges has reached rare values. What to expect?
Glassnode analysts have calculated that the outflow of BTC from the trading floors is approaching 100,000 coins per month. The indicator is rare, and it can serve as a bullish signal.
After the 1st quarter losses were recouped and volatility eased, bitcoin got a bullish momentum between March 22 and 30. However, it was not without turbulence and uncertainty. Although some bulls have already braced for BTC at $50,000, factors remain that are preventing the upside move. This is an armed conflict in Europe, preparations for a rate hike by the US Federal Reserve and a tightening of the position of European regulators.
Recall that at the time of this writing – April 5 – 1 BTC costs $ 46,600.
So, the outflow from the exchanges is 96,200 BTC per month. The indicator is high, and the last time this was observed at the beginning of 2020. Then the event correlated with the formation of a price bottom and led to a boom at the end of 2020.
A similar scenario could happen again. So says the PlanB analyst who developed the Stock-to-Flow model for the crypto market. He notes that bitcoin is halfway to the next halving – reducing miner rewards and slowing down the release of coins – which means that the rise would look quite appropriate.
Trader Michael Novogratz disagrees: there will be no surge this year, and this is largely due to the uncertainty of regulation in emerging markets.
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