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Cryptocurrency analysis firm Alphractal has published a remarkable assessment of Bitcoin.
According to the analysis, the Bitcoin balance on cryptocurrency exchanges has decreased by 3.77 million BTC since February 2020. This means that approximately $219 billion worth of Bitcoin has been withdrawn from exchanges.
Although this major movement may seem like a sell-off at first glance, according to Alphractal, the opposite is true: This rise is a strong indicator of growing confidence and maturity in the market.
Alphractal noted that investors have no intention of selling their Bitcoin by moving it to personal wallets, but rather see the digital asset as a long-term store of value. According to analysts, this indicates that the “HODL” strategy is gaining strength.
With Bitcoin being pulled off exchanges, selling pressure is thought to have significantly decreased, creating a supply squeeze that could make it easier for prices to move upwards in the event of a potential demand increase. Alphractal sees this as a “very bullish signal.”
As a result, Alphractal says that the 3.77 million BTC outflow from exchanges is not a sign of panic, but rather a strong belief in the future of Bitcoin. This development shows that Bitcoin is increasingly being adopted as “digital gold” by more and more people.
*This is not investment advice.
Read the full article here
