Blockchain

Bitcoin (BTC), the largest cryptocurrency in the market by trading volume and capitalization, has embarked on a renewed bullish uptrend, reclaiming previously lost territories and surpassing resistance levels, igniting optimism among investors. 

Currently trading just below its 25-month high of $49,000 at $47,900, Bitcoin has experienced a remarkable price increase of over 6% within 24 hours and a significant 11% surge over the past seven days. 

Mapping BTC’s Path Amidst Pre-Halving Rally

However, amidst the market’s excitement, it is crucial to consider historical tendencies and their potential impact on Bitcoin’s trajectory leading up to the upcoming halving event. Market expert and analyst Rekt Capital highlights two noteworthy historical patterns:

Firstly, the “Pre-Halving Rally” phase appears to be commencing. This phase refers to a period where Bitcoin experiences a surge in price before the halving event takes place. 

Secondly, historical data reveals that Bitcoin has struggled to break beyond the macro diagonal resistance before the halving, which Rekt places at $47,000. Additionally, it has encountered difficulty surpassing its Four Year Cycle resistance, which is approximately $46,000 in the current cycle.

It is worth noting that even though the price has surpassed these resistance levels, a consolidation or continuation of the uptrend must be seen, as a retracement could take place and leave the BTC price stuck between these resistances.

Given these historical trends, exploring how Bitcoin could potentially reconcile these patterns is interesting. Rekt Capital offers insights into one possible path that Bitcoin could take:

During the pre-halving rally phase, Bitcoin may produce limited upside, resulting in an upside wick at the end of February. This pattern has been observed in previous months and 2019. 

Following this, Bitcoin might establish another range at higher price levels in March, potentially allowing altcoin rallies to take center stage. Finally, a few weeks before the halving event, Bitcoin could experience a pullback, creating a pre-halving retrace.

This proposed path suggests that Bitcoin could surpass the Macro Diagonal resistance with an upside wick but remain below it in terms of end-of-month monthly candle closes during this gradually concluding pre-halving period.

Bitcoin Bull Run Indicator Flashing Buy Signal

Crypto analyst Ali Martinez has added to the growing bullish sentiment surrounding Bitcoin by highlighting a key indicator that suggests potential upside movement. 

According to Martinez, the Super Trend indicator flashed a buy signal on the BTC monthly chart. This tool is renowned for its precision in predicting bullish trends in Bitcoin markets.

The indicator’s track record underscores the significance of this buy signal. Martinez points out that the Super Trend has issued four buy signals since Bitcoin’s inception, and all four have been validated, leading to substantial gains. These gains amount to an impressive 169,172%, 9,900%, 3,680%, and 828%, respectively.

However, amidst the bullish outlook, Martinez also highlights a potential strategy that may soon impact Bitcoin’s price.

According to the Bitcoin liquidation heatmap, a scenario is unfolding where liquidity hunters could drive the price of Bitcoin down to $45,810. The intention behind this move would be to trigger liquidations amounting to a substantial $54.73 million.

It is important to understand that liquidity hunters aim to exploit price movements to trigger forced liquidations among overleveraged traders. By strategically driving the price down, they can force these traders to sell their positions, resulting in cascading liquidations that potentially amplify price downward movements.

Featured image from Shutterstock, chart from TradingView.com 

Ethereum (ETH) is showing a noteworthy pattern in the options market. According to data from Deribit, a leading platform for crypto futures and options trading, there’s a significant concentration of call options for ETH around the $4,000 strike price for both the June and September expiries.

Options Traders Anticipate $4,000 Ethereum

This accumulation of ETH call options centered on the $4,000 mark indicates a concentrated expectation among traders that the price of Ethereum could rise to, or above, $4,000 by these dates.

For context, options are financial derivatives that give the buyer the right, but not the obligation, to buy (in the case of call options) or sell (put options) the underlying asset at a predetermined price on or before a specified date.

Notably, according to a chart from the crypto futures and options trading platform, the $4,000 ETH strike price emerged as the dominant position in the ETH options trading landscape, surpassing other strike prices for the June and September expiry dates.

It is worth noting that such a pattern indicates market sentiment and can influence trading strategies. In this instance, the pattern implies that most options traders are likely bullish on Ethereum, anticipating a notable increase in its value.

Furthermore, this trend might lead fundamental traders to reconsider their positions on Ethereum, potentially shifting their outlook to expect an upward trajectory in the asset’s performance.

Factors Influencing $4,000 ETH Options Strike Price

This clustering of Ethereum call options at the $4,000 strike price appears to be influenced by several factors, including the potential approval of a spot Ethereum exchange-traded fund (ETF) by the US. Securities and Exchange Commission (SEC).

With the final decision deadline for these spot ETF applications set for May 23, traders seem to be positioning their Ethereum options contracts in anticipation of a favorable outcome, as observed by Bitfinex’s Head of Derivatives, Jag Kooner.

However, Deribit’s Chief Commercial Officer, Luuk Strijers, cautions against drawing definitive “conclusions” about the link between the derivatives market and the Ethereum spot ETF approval expectations.

Strijers notes that while the “June skew” is higher, indicating more “expensive calls,” it’s challenging to pinpoint this precisely to the spot ETF news or expected correlation with the upcoming Bitcoin halving.

Meanwhile, Altcoin Daily crypto analysts recently outlined three key factors that could propel Ethereum’s price to $4,000. Among these factors, the anticipation and potential approval of Ethereum Spot Exchange-Traded Funds (ETFs) were highlighted as a major catalyst.

While Ethereum futures have already gained global acceptance, analysts emphasize that the green light for these spot ETFs could significantly trigger Ethereum’s long-term price appreciation.

Regardless of this contrasting ETH view, ETH currently trades at $2,495, showing a 7.7% increase in the past week and a 1.9% rise in the past 24 hours.

Featured image from Unsplash, Chart from TradingView

A recent report by Messari sheds light on the state of the XRP Ledger (XRPL) and its notable performance during the fourth quarter (Q4) of 2023. 

The report highlights significant milestones, including its native token market capitalization, distribution, burning mechanism, price movement, legal battle, and network activity.

Distribution Of 4 Billion XRP Contributes To Market Cap Growth? 

As of Q4 2023, XRP, the native token of the XRPL, emerged as the sixth-largest cryptocurrency by market capitalization, reaching $33.7 billion. The token’s circulating market cap witnessed a substantial 21.2% increase quarter-over-quarter (QoQ) and an impressive 93.6% growth year-over-year (YoY). 

According to Messari, the increase in market capitalization was primarily due to the distribution of 4 billion XRP and a significant price spike on November 13, when the token reached as high as $0.7503.

Throughout 2023, 4 billion tokens were distributed, accounting for 8% of the XRP supply from the end of 2022. While this distribution contributed to the increase in market cap, it was overshadowed by the impact of the price spike. 

Additionally, the XRPL employs a transaction fee-burning mechanism, applying deflationary pressure to the total supply of 100 billion XRP. However, the low transaction fees on the network have resulted in a relatively low burn rate of approximately 12 million XRP since the inception of the XRP Ledger.

Network Activity Shows Mixed Trends In Q4 2023

Q4 2023 marked a significant turning point for XRP, concluding a multi-year legal battle with the US Securities and Exchange Commission (SEC). In July 2023, the district court ruled that XRP is not considered an investment contract or a security, distinguishing it from many other blockchain assets. 

This ruling triggered a surge in XRP’s price, with an increase of over 70% on July 14 and a peak of $0.82 on July 20. The subsequent relisting of XRP on major cryptocurrency exchanges further bolstered its position.

Network activity on the  XRPLedger displayed mixed trends in Q4. While active addresses decreased by 31.3% QoQ, transactions increased by 22.7% QoQ. 

Notably, a significant portion of transaction activity originated from a group of accounts sending transactions to a single account for inscription-related activity. The number of accounts on the XRPL increased by 188,000, reaching 5.00 million in Q4. 

Overall, the Q4 2023 report on the XRP Ledger showcases its growth, driven by various factors such as price spikes, legal victories, and network activity. With its expanding market capitalization and increasing adoption, XRP continues to solidify its position in the cryptocurrency market.

Featured image from Shutterstock, chart from TradingView.com

The United States economy and where it might be headed has been a hot topic of debate among finance experts, with some recommending Bitcoin as a safe haven. One of those who has continued to tout BTC as the answer is renowned finance author Robert Kiyosaki, who has made a gloomy prediction for the US economy.

The Economy Is Coming Down

In a post made on X (formerly Twitter), Robert Kiyosaki, who is widely known for his best-selling finance book titled ‘Rich Dad Poor Dad’, warned investors of an impending crash. According to Kiyosaki, a lot of investors would end up losing their money as they do not know what to do with it.

He compared the current situation to flight students in the US Navy being taught how to fly and also how to crash. However, it seems that there is no easy option for investors going forward, as he calls for a “bail out.”

The finance expert warns that banks as well as the US economy will crash, and “We are not going in for a soft landing.” In light of this, he steers investors toward other forms of wealth preservation, which are Gold, Silver, and Bitcoin.

As much as the finance author expects that the crash will be brutal, he believes that by being in the three assets mentioned above, then investors can have “parachutes for your personal soft landing.”

Strong Advocate For Bitcoin

Kiyosaki is not new to pushing Bitcoin as an alternative to traditional cash and investment vehicles. Over the last year, the finance expert has warned that the US economy is headed for doom and as always, pushes the likes of Gold, Silver, and Bitcoin as an answer to the ‘inevitable crash.’

The author has also provided incredibly bullish predictions for the BTC price going forward, which he expects to rise more than 300% from here. According to Kiyosaki, Bitcoin will rise as high as $150,000 post-Spot Bitcoin ETFs approval, and with the price inching toward $50,000 already, it seems Kiyosaki’s prediction may end up playing out.

Kiyosaki has also presented Bitcoin as a safe haven at a time when there is widespread political discontent. He has also publicly declared his dislike for the current President, Joe Biden, who he believes is weak and a terrible president.

In order to fight back, the finance author suggests that investors move their assets into Gold, Silver, and Bitcoin which cannot easily be controlled by the government. He also believes BTC is the “best protection” against hyperinflation, which he expects to happen soon.

Dan Gambardello, the founder of Crypto Capital Venture, has laid out a bullish narrative for Cardano going into the next bull run. Based on his analysis, the crypto token has the potential to be one of the best-performing coins during that period. 

History Could Repeat Itself For Cardano

In a video posted on his YouTube Channel, Gambardello mentioned how Cardano was currently in the same technical area it was in the last two market cycles before the Bitcoin Halving. He further noted that on those two occasions, ADA managed to surpass expectations and ended up clocking a new all-time high (ATH) in the process. 

Specifically, ADA is said to have seen a 2700% gain on its way to its current ATH of $3 after the 2020 Bitcoin Halving. Gambardello believes that this time will be no different despite ADA being significantly down from its ATH. Although he was trying to be cautious with his price predictions, he raised the possibility of Cardano seeing an 1800% gain on its way to $10 in the next bull run. 

Interestingly, that isn’t the crypto analyst’s most bullish prediction so far. He once stated that ADA could rise to $11 at a market cap of $400 billion. Then, he hinted that ADA could enjoy a similar run as ETH did in the last bull run due to its DeFi functionalities. 

This time around, he once again made the ADA and ETH comparison, noting that the former hitting a market cap of $350 billion in the next bull run is still way less than ETH’s market cap in the last bull run. 

Bitcoin Halving Is The Key To Unlocking The Next Bull Run

Before now, Gambardello had hinted that the Bitcoin Halving was going to kickstart the next bull run. In his recent video, he once again suggested that the next bull run was going to start after the Halving in April, noting how the bull cycles always take place after this event. He further highlighted how the Bitcoin chart was also indicating that the next bull run is imminent. 

According to the crypto analyst, “a simple zoom out on a Bitcoin chart” shows that there is so much to be bullish about. Altcoins are not left behind, as Gambardello also claimed that the charts of altcoins like ADA and ETH suggested that something was getting ready to happen, implying that a massive rally was on the horizon. 

Meanwhile, Gambardello wasn’t only bullish on the crypto market from a technical analysis perspective. He alluded to fundamentals like recent developments around the Spot Bitcoin ETFs, which show increased demand for the flagship crypto token, Bitcoin. 

A recent report released by Ripple in its Q4 2023 XRP Markets Report unveiled that XRP experienced a substantial increase in daily trading volume, hitting roughly $600 million this quarter. According to the report, this surge represented a 75-100% growth compared to the lower trading volumes observed in Q3.

Notably, the Ripple report suggests a rejuvenation in investor interest and market activity for the altcoin, marking a notable shift from the previous quarter’s performance.

Ripple’s XRP Holdings And Other Crypto Volume In Q4 2023

Ripple’s Q4 report also provided insights into the company’s XRP holdings. As of September 30, 2023, Ripple’s total XRP holdings were more than 5.25 billion, stored in its wallets, plus another 41.3 billion XRP secured in on-ledger escrow.

However, by the close of December 2023, Ripple’s wallet holdings had slightly reduced to about 5.08 billion of this token, and the XRP in on-ledger escrow had also decreased to approximately 40.7 billion.

According to the report, Ripple’s access to the escrowed XRP is restricted until scheduled monthly releases occur, a mechanism that ensures the controlled release of tokens into the market.

Meanwhile, in addition to the surge in XRP’s trading volume, the Ripple markets report also revealed that other major cryptocurrencies, such as Bitcoin (BTC) and Ethereum (ETH), saw considerable increases in their trading volumes.

BTC volumes rose by 88% quarter-on-quarter (QoQ), while ETH recorded a 140% increase over the same period. These trends indicate a broader recovery and bullish sentiment across the crypto market during the quarter.

XRP’s Market Performance And Future Outlook

Despite the recent surge in trading volume, XRP’s market price has shown varying trends. In the last quarter of 2023, the altcoin traded above $0.60, but as of the latest price action, it hovers just above $0.5, indicating a decline.

Although there has been a 3.7% increase in the past week and a 2.2% rise in the past day, the asset is currently trading around $0.52.

Nevertheless, the community and analysts remain optimistic about its future potential. Crypto analyst Jaydee recently pointed out a historical pattern suggesting an imminent parabolic move for XRP. According to Jaydee, the altcoin is currently testing a 10-year trendline, similar to previous instances that led to significant price increases.

#XRP – Last two times we tested the 10-year trendline, $XRP 39x – 650x in price w/in a year! We are now testing multi-year trendline!

Can we bounce off trendline to finally break structure?! Do NOT “KNOW WHAT YOU HOLD”, we taking “calculated profits!”

RT/Like for updates!… pic.twitter.com/flIQcDh4Ls

— JD (@jaydee_757) February 3, 2024

Additionally, Crypto Patel, another analyst, shared his forecast, emphasizing XRP’s potential to shine and go parabolic, drawing parallels to past market trends.

Patel also referred to the legal developments involving Ripple and the US Securities and Exchange Commission (SEC), suggesting that the recent legal victory for Ripple could open doors for XRP’s breakout in the next bull run.

The analyst drew attention to a specific chart pattern from 2017 that preceded a massive rally for altcoin. If this trend repeats, Patel posits, the asset could witness an ‘extraordinary’ surge, potentially reaching over $10.

Is This Finally XRP’s Time To SHINE, WIll hit $10 ?

Last bull #XRP seriously underperformed while stuck fighting the #SEC
BTC hit new highs while XRP failed to pass 2017’s $3.30 ATH

But with the SEC case now won – the floodgates may finally BE OPEN!
Similar… pic.twitter.com/joWLvBnadp

— Crypto Patel (@CryptoPatel) February 7, 2024

Featured image from Unsplash, Chart from TradingView

Founder and Chief Executive Officer (CEO) of Evai Crypto Ratings, Matthew Dixon, has expressed optimism about the Solana future price outlook, projecting a new bullish target for the cryptocurrency. 

CEO Predicts Bullish Outlook For Solana

In a recent post on X (formerly Twitter), Dixon shared a Solana and USD pair price chart originally published on TradingView, a crypto analysis platform. The crypto CEO indicated that the ongoing price correction for Solana, identified as “wave 4 (blue)” on the price chart, has not concluded and is expected to experience further declines. 

He predicted that the ongoing wave 4 (blue) would reach a price level similar to Solana’s previous price correction, albeit to a lesser degree. The Evai CEO also anticipates that after the conclusion of the recent correction, Solana may experience a price rally once again.

Previously, Solana witnessed a major surge, nearly surpassing the $125 threshold. However, the cryptocurrency lost a substantial portion of its gains as the bullish hype faded, eventually settling below the $100 price mark at some point. 

Additionally, on Tuesday, February 6, the Solana blockchain was temporarily halted due to an outage, resulting in no new blocks being produced for over 25 minutes. This unexpected disruption significantly impacted the overall sentiment of the cryptocurrency, causing slight declines in the price of SOL. Following this, a solution was coordinated among validators, and the network officially resumed operations. 

Presenting another price chart for Solana, Dixon has projected a new upside target of $120 for the cryptocurrency. The crypto CEO has stated that despite the recent blackout, Solana has maintained both short-term and long-term positive prospects. Nonetheless, investors are advised to anticipate a potential mid-term price correction for the cryptocurrency. 

SOL Price Surges Above $100 Mark

Reports from Santiment, a global market intelligence platform, have also indicated a bullish outlook for Solana. Earlier on Thursday, the crypto data platform disclosed on X that Solana is currently dominating the altcoin market and has become one of the few cryptocurrencies outperforming Bitcoin. 

Santiment shared a price chart illustrating Solana’s recent price action, showcasing a robust climb over the past few days. According to their data, in the last 36 hours, Solana’s price relative to Bitcoin has increased by over 4.5%. 

The cryptocurrency market intelligence platform disclosed that the outage earlier this week has instigated “Fear, Uncertainty and Doubt” (FUD) amongst investors, contributing to the current price rebound in Solana. 

Solana rallied by almost 5% in the last day, and at the time of writing, the cryptocurrency is trading at a price of $105.46, reflecting a weekly increase of 4.39%, according to CoinMarketCap. 

Crypto exchange Kraken started notifying affected XRP holders about the potential monetary benefits they could receive from the class action lawsuit against Ripple.

The exchange recently emerged victorious in the Zakinov v. Ripple Case. The exchange successfully intervened to protect its customers’ data from being shared without their consent.

Kraken Begins The Notification Process

Kraken, one of the largest crypto exchanges in the world, intervened in the Zakinov v. Ripple lawsuit, seeking to protect its customer’s privacy and data. The court ruling allowed Kraken to inform the affected users about the class action against Ripple, ultimately giving the customers the option to decide whether to participate in the lawsuit.

Kraken has now begun to notify eligible customers about the potential monetary benefits from the Zakinov v. Ripple lawsuit. The notification is aimed at Kraken users who purchased XRP during the previously established period, as the email stated:

Our records indicate that you have purchased XRP on Kraken between July 2, 2017 and June 30, 2023, which means that it might be within your rights to receive money or benefits that come from the lawsuit, depending on the outcome.

Yassin Mobarak, Dizer Capital Founder, was among the recipients, and he shared part of the email on X (formerly known as Twitter), expressing his surprise about the notification and the possibility of earning a profit from his XRP holdings through the class action lawsuit.

I always thought I would make money from my $XRP holdings, but not like this

PS. First I thought this was a scam email, but now I think it’s real. pic.twitter.com/4jhLuUSqEt

— Yassin Mobarak (@Dizer_YM) February 9, 2024

Mobarak expressed his initial disbelief in the email’s legitimacy, as recent phishing attacks exploited official email accounts of actors in the Web3 industry and exposed users to a massive and sophisticated phishing campaign.

The legitimacy of the emails was doubted by several Kraken customers who sought confirmation from the exchange’s official X account. Kraken’s support team confirmed the email as safe and authorized by the exchange.

Next Steps For XRP Holders

Following the notification, Kraken has updated its support page to provide customers with further details about the class action lawsuit.

The exchange addressed doubts such as who the affected parties are, clarifying that it “only applies to class members who purchased XRP within the United States during the relevant class period” and offering further information about the lawsuit:

The lawsuit also claims that persons or entities who purchased XRP during the class period (July 3, 2017, to June 30, 2023) have the right to recover (a) the consideration paid for the XRP, with interest, if they retained the XRP, less the current price of the XRP or upon tendering the XRP, or (b) damages if they sold the XRP at a loss.

Lastly, the exchange presented two options for the affected customers: do nothing or ask for an exclusion from the lawsuit.

As mentioned in the email you received, you have the option to either do nothing or exclude yourself. For more details, please visit the support article linked below.

https://t.co/qGViqcahTw

Best,Kraken Support

— Kraken Support (@krakensupport) February 8, 2024

If the customer decides to do nothing, they will keep the possibility of getting the money or benefits from the lawsuit’s resolution. However, they automatically give up on any rights to sue Ripple separately in the future.

If they decide to be excluded from the class action and the potential benefits, XRP holders maintain the right to sue the defendant and must send a signed “Exclusion Request” statement by April 5, 2024.

Bitcoin is finally showing a sustained bullish push as it has now broken above $47,300, but overly positive sentiment can be an obstacle to this rally.

Bitcoin Fear & Greed Index Suggests Market Is Nearing Extreme Greed

The “Fear & Greed Index” is an indicator that tells us about the general sentiment among the investors in the Bitcoin and wider cryptocurrency sector. According to Alternative, its creator, the index takes into account five factors to calculate this sentiment.

These are volatility, market volume, social media sentiment, market cap dominance, and Google Trends. The index outputs the sentiment as a number lying between zero to hundred.

All values of 46 and under imply the investors are fearful, while those of 54 or over suggest the presence of greed in the market. The region between 47 and 53 corresponds to the region of neutral sentiment.

Now, here is what the Fear & Greed Index looks like for Bitcoin right now to see which of these regions the market stands in at present:

As is visible above, the Bitcoin Fear & Greed Index has a value of 72 at the moment, implying that the majority of the investors in the space share a greedy mentality.

Besides the three core sentiments mentioned earlier, there are also two extreme ones: the extreme fear and extreme greed. The former of these occurs at values of 25 and under, while the latter takes place at 75 and above.

Historically, these two sentiments, in particular, have held great significance for the cryptocurrency’s trajectory. Generally, at any point, the asset is more likely to move against the expectations of the majority, and in these extreme regions, this expectation becomes the strongest.

As such, these sentiments have been where major reversals in the asset have been the most likely to occur. Followers of a trading philosophy called “contrarian investing” exploit this fact to time their buying and selling moves. Warren Buffet‘s famous quote sums up the idea, “Be fearful when others are greedy, and greedy when others are fearful.”

At a value of 72, the Bitcoin market is quite close to entering into the extreme greed region right now. Just yesterday, the metric had a value of 66, which means there has been some jump in just the past 24 hours.

This increase in the index has naturally come because of the bullish momentum that the asset has enjoyed in the past day. Any further improvements in sentiment, however, may be alarming, as the metric would then enter into the extreme greed territory.

The last time that the Bitcoin Fear & Greed Index surged into extreme greed values was around the time of the approval of the spot exchange-traded funds (ETFs). As it happened, the coin hit its top, coinciding with this overly bullish mentality.

Thus, if this precedence is anything to go by, any visit into the territory in the coming days may serve as a warning that a top is near for the cryptocurrency.

BTC Price

Bitcoin has enjoyed an uplift of over 6% during the past 24 hours as its price has cleared the $47,300 level.

Bitcoin broke over the $46,000 level twice in the past 24 hours for the first time since the approval of spot Bitcoin ETFs by the SEC, signaling a bullish return into most cryptocurrencies spearheaded by BTC. In particular, Bitcoin investors seem to be gearing up for action as the next Bitcoin halving approaches with an interesting time of withdrawal from exchanges.

Serious money has been on the move from exchanges in the past 30 days, as shown by on-chain data. As a result, the Bitcoin balance across various exchanges has seen a drastic drop to the lowest level in six years.

Percentage Of Bitcoin Supply On Exchanges Drops To Lowest Level Since 2017

A large portion of Bitcoin holders have been holding onto their coins for the long haul. According to IntoTheBlock data, about 69% of Bitcoin holders have been holding their coins for longer than one year.

Data from the on-chain analytics platform Santiment also showed that the supply of Bitcoin on exchanges recently dropped to 5.3% of the total circulating supply for the first time since December 2017, indicating 94.7% of the supply is currently in private custody. This metric is particularly interesting, considering BTC’s total circulating supply has grown by 2.84 million since December 2017.

As shown in Santiment’s chart, the supply on exchanges has been on a free fall since January 10, around when the first spot Bitcoin ETFs went live in the US. This isn’t surprising, as the sentiment around Bitcoin turned fully bullish during this period despite a prolonged price struggle.

#Bitcoin‘s price dominance has continued to grow over #altcoins, as its market value surged as high as $45.5K today. Traders remain skeptical toward the asset for a 3rd straight week. This is the lowest ratio of $BTC on exchanges since December, 2017. https://t.co/XC3UK258lM pic.twitter.com/4MwvXE28RC

— Santiment (@santimentfeed) February 8, 2024

In a similar manner, whale transaction tracker Whale Alerts has disclosed large bouts of BTC exiting crypto exchanges to private wallets in the past month. Notably, Bitcoin’s dominance over altcoins has gained ground, with the institutional demand for Bitcoin post-ETF approval also surging.

1,150 #BTC (51,452,847 USD) transferred from #Coinbase to unknown wallethttps://t.co/bQl4vCkifM

— Whale Alert (@whale_alert) February 8, 2024

This mass BTC exodus from crypto exchanges signals that long-term holders feel more comfortable keeping their coins in self-custody rather than on exchanges. 

The total Bitcoin withdrawals from exchanges in the past seven days were to the tune of $8.64 billion, outpacing a $8.42 billion inflow by $220 million. Wallets holding more than 1,000 BTC have also accumulated 1.03% of the total circulating supply in the past month.

Withdrawals from exchanges are generally a good phenomenon for crypto assets, as they reduce the amount of cryptocurrencies readily available for sale. Fewer BTC available means less selling pressure and the opportunity for the value to go up based on supply and demand. 

At the time of writing, Bitcoin is trading at $46,250, up by 4% in the past 24 hours and 7.15% in the past seven days. The cryptocurrency is currently aiming for the $50,000 mark, which it can reach very soon if the accumulation strategy continues.