Bitcoin Price Primed For a Leg Up as Demand and On-Chain Data Favorable, Analysis
Although bitcoin’s price continues to struggle at $60,000, on-chain data indicates several bullish developments for the primary cryptocurrency. Institutional investors have only intensified their purchases, long-time HODLers and miners refuse to sell, and the BTC stored on exchanges keeps declining.
On-Chains Data Suggests Skyrocketing BTC Demand
As CryptoPotato reported before, the number of bitcoins held on cryptocurrency exchanges has been declining for a while. More specifically, the BTC balance stored on trading venues reached a high in mid-March 2020, when the asset’s price slumped by 50% in a day and has plummeted since then to new yearly lows.
CryptoQuant data confirmed this statistic recently, indicating that bitcoin investors are in no rush to deposit their holdings. Just the opposite, there’re roughly 2.2 million coins held on exchanges, which is less than 12% of all circulating bitcoins.
Separately, further data informed that long-term holders and miners have seized selling their assets too. Miners sometimes have a direct impact on BTC’s price as when they sell in bulk, the asset falls hard.
Such was the case in early March when bitcoin slumped by more than $5,000 in a day when they sold massive quantities. However, this doesn’t seem to be the case now as miners have turned to HODLing instead.
Institutions’ Appetite Intensifies
Simultaneously, institutional investors’ demand for the primary cryptocurrency keeps enhancing. Glassnode data showed that 12,638 bitcoins were withdrawn from the largest US-based digital asset exchange Coinbase in ten minutes.
This amount equals $760 million, with BTC’s price currently hovering just over $60,000. Previous examples have indicated that the asset tends to appreciate in value following similar substantial withdrawals from Coinbase.
Last but not least comes Mike McGlone, a senior commodity strategist at Bloomberg. While asserting that bitcoin is still in price-discovery mode and the current “plateau appears distant,” McGlone also outlined the cryptocurrency’s declining supply and highlighted the rising demand.
These developments are “leading us to expect continued price appreciation and the establishment of a higher plateau as the crypto matures.”
It’s worth noting that McGlone and several other Bloomberg researchers predicted a considerable 8x surge from BTC’s current price level to $400,000 as reported during the weekend.