Investor confidence appears to be on the rise within the crypto market currently, and Bitcoin has been a serious beneficiary of this positive trend. Consequently, there was a continuous accumulation of BTC amongst large-scale investors despite its somewhat frustrating price motion.
The premier cryptocurrency’s price could have ended May beneath the psychological $70,000 mark, despite having touched the extent a few times within the last two weeks of the month. The newest on-chain data suggests that the religion in Bitcoin has only continued to grow strong.
Is BTC Primed For A Price Rally?
Distinguished crypto analyst Ali Martinez shared via a post on the X platform that substantial amounts of Bitcoin have been making their way out of centralized exchanges. This on-chain commentary is predicated on the CryptoQuant Exchange Reserve metric, which tracks the quantity of a specific cryptocurrency within the wallets of all centralized exchanges.
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A rise within the metric’s value indicates that investors are making more deposits than withdrawals of a crypto asset (Bitcoin, on this scenario) into centralized exchanges. Meanwhile, when the metric declines in value, it implies that more coins are moving out than into the trading platforms.
In response to Martinez’s post, greater than 37,000 BTC (price roughly $2.53 billion) have been transferred out of crypto exchanges previously three days. This significant exodus of funds indicates a change in sentiment and the long-term holding strategy of Bitcoin investors.
Chart showing BTC balance on all exchanges | Source: Ali_charts/X
While it’s difficult to inform the precise rationale behind the large outflow from exchanges, the movement of funds from trading platforms suggests a rise in investor confidence. This means that many investors is likely to be convinced by the long run promise of Bitcoin, thereby opting to store their assets in self-custodial wallets in the long run.
What’s more, the downward spiral of Bitcoin’s supply on centralized exchanges could trigger a bullish rally for the premier cryptocurrency’s price. The sustained decline in BTC’s balance on exchanges could end in a supply crunch.
For context, the provision crunch refers to a scenario or period during which the provision of a specific asset is lower than the demand for it, leading to a surge within the asset’s value.
Bitcoin Price At A Glance
As of this writing, the worth of Bitcoin stands around $67,489, reflecting a 1.5% decline previously 24 hours. This sluggish performance previously day underscores the premier cryptocurrency’s struggles previously week. In response to CoinGecko’s data, the BTC price is down by nearly 2% within the last seven days.
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BTC price thickens around $68,000 on the every day timeframe | Source: BTCUSDT chart on TradingView
Featured image from iStock, chart from TradingView