As a seasoned analyst with decades of experience in the financial markets, I have witnessed many trends and cycles come and go. The recent development of Bitcoin reserves on crypto exchanges has piqued my interest, given its potential implications for the market’s trajectory.
Over the years, the amount of Bitcoin stored on cryptocurrency platforms has significantly decreased, marking a first as the Bitcoin held on these exchanges has now dipped under the 3 million mark.
Based on figures from CryptoQuant, the current bitcoin trading volume on exchanges is approximately 2.46 million. Since Donald Trump’s election win, over 171,000 Bitcoins have been withdrawn from exchanges, likely boosting investor confidence in the market. As a result, Bitcoin surged to a peak of $99,600, representing an over 40% rise from its previous price of $96,000.
Initially in January, approximately 3 million Bitcoin were accessible for trade. However, as of now, over half a million Bitcoin have been withdrawn from this total amount.
In the year 2021, the Bitcoin reserves amounted to approximately 3.2 million coins. As stated by CryptoQuant, a decrease in the liquid supply can lead to an increase in the price due to the reduced availability of Bitcoin for instant purchase, which often creates upward pressure on the market.
Currently, many long-term crypto investors are choosing to keep their Bitcoin instead of selling it. Data from Glassnode indicates that an impressive 185,000 Bitcoins were placed into storage wallets last month. This accounts for approximately 75% (or around 14.8 million) of all available Bitcoins, which are now being held long-term rather than actively traded.
As a researcher, I’ve observed an influx of large institutions into the Bitcoin market. For example, the Bitcoin ETF overseen by BlackRock has surpassed 500,000 BTC, while MicroStrategy, a business intelligence firm, has recently invested $1.5 billion to acquire an additional 15,400 BTC. This move increases MicroStrategy’s total Bitcoin holdings to over 400,000 BTC, thereby decreasing the available supply for trading.
During the same period, the value of Bitcoin has decreased compared to its initial price this month. After the election, it dropped further to reach approximately $96,700.
Currently, the cryptocurrency has dropped by 2% and reached a level of around $94,000, resulting in approximately $578 million in liquidations within the market.
As a crypto investor, I’m excited about the long-term prospects of Bitcoin, as analysts suggest its potential is immense. With a finite supply of Bitcoins in circulation and growing market demand, they predict a favorable outlook for this cryptocurrency up to 2025. For now, we’re all watching eagerly as the market races towards the milestone of $100,000 per Bitcoin.
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2024-12-04 21:24