Bitcoin reserves fall as much as 10% from January 2021 to March 2021.
More people aspiring to invest in Crypto.
Exchanges Witness Acute Bitcoin Outflow!
The meteoric rise in the value of Bitcoin price rally, hitting $58,000 by mid-February 2021 created a strong sentiment in the cryptomarkets. One of the largest cryptocurrency exchanges in North America, Coinbase announced the much anticipated Direct listing. These developments have brought a sense of security to the crypto trading community.
Markets expected to correct after a bull-run for a full month. What is more interesting is that even after a deep correction, the reserves of BTC on the exchanges are depleting fast. One of the analysts and traders pointed out the trend showing depleting reserves. It is most likely that Bitcoin is being stored in cold storage after purchases.
Bitcoin has been consolidating at $46,000 levels, which has boosted the investors’ confidence, both retail and Institutional. This boost has led people to consider Bitcoin as a Long term investment. According to a netizen, as much as 40,000 Bitcoin has seen its easy out of Coinbase.
Growing Bitcoin Adoption
Amidst this, major corporations have announced to accept Bitcoin as a mode of payment for their services. Large investments from cash-rich corporations also have contributed to depleting reserves of Bitcoin.
Either way, since the investors have chosen to HODL, it could be a possibility that a super-cycle is approaching to turn the markets bullish. The cryptocurrency exchange Coinbase alone had a surge of 30% in crypto-transactions and added up to 45,000 users every day in the fourth quarter of 2020.
Bitcoin ETFs are all set to hit the crypto-markets soon, which could lead Bitcoin to higher price cycles. “Buy the dips and Hodl” seems to be the plan of the majority of investors!! Bitcoin reserves had increased by 100% from 2018 to early 2020. Since the HODLing is on the rise, we can expect the bitcoin reserve to deplete marginally.