Bitcoin buyers may have bought the recent price dip and now are taking down their crypto assets from exchanges, blockchain data suggests. To digital-market analysts, it’s bull signal traders or investors could be preparing to carry their BTC for the future.
More than 1,365 BTCs were faraway from cryptocurrency exchanges during the 24 hours through 12:00 UTC Thursday, the very best for a 24-hour period thus far this year, consistent with the blockchain data firm Glassnode.
The spike in withdrawals from exchange addresses came as the leading cryptocurrency by market capitalization slumped earlier today on Thursday to close $50k, from a high at $56,783.86 USD within the past 24 hours.
“Today we have a new all-time high in BTC leaving the exchanges for 2021 and a new dip-buying prize to award,” bitcoin analyst Willy Woo tweeted earlier today.
At the same time, more coins are being withdrawn to an illiquid status, separate blockchain data reveal.
The monthly net change of supply held by liquid and highly liquid entities have pushed into deeply negative levels, to a degree not seen in 3 years, consistent with Glassnode.
That might be associated with many investors’ growing use of bitcoin as a hedge against inflation within the face of trillions of dollars of monetary stimulus pumped into global financial markets over the past year by central banks around the world.
“The trend of coins withdrawn and locked away into long-term holding patterns may be a direct response to the world’s financial institutions response to 2020,” Glassnode revealed in its newsletter earlier this month. “There still appears to be significant demand from long-term investors.”
At the reporting time, Bitcoin [BTC] is presently trading at a price of around $51,995.97 USD, down 7.02% for the day.