As investors are ramping up their efforts to move crypto into personal wallets, market observers interpret the latest trend as a sign of reduced ‘selling pressure’. bitcoin (btc)According to a recent note prepared by analysts at Bank of America (BoFA).
During the week to April 4, a period showing the second largest net BTC outflow from cryptocurrency exchanges this year, a net $368m worth of top cryptos were moved to personal wallets, BofA strategists Alkesh Shah and Andrew Moss wrote in a note. Was obtained by Bloomberg.
According to two analysts, “investors moved coins from exchange wallets to their personal wallets when they intended to hold (or HODL) them, indicating a possible reduction in selling pressure.”
In their note, the strategists said that concerns arising from the US regulatory clampdown on crypto exchanges could be the main factor that could lead to outflows from the platforms.
Gary Krugljako, founder of 0VIX, an open-source protocol for lending and borrowing, commented that traders are waiting for another major signal to confirm BTC’s breakout. He said economic data to be released in the US this week could serve as such a signal, especially the country’s consumer price index which is to be published today.
The latest survey by Bloomberg News offers a median estimate of a 5.1% jump in March from a year ago. Some crypto market observers believe that the price of BTC could react positively to any data demonstrating weakness in US consumer sentiment.
According to Krugljakow, “anything below 5.2% or around 5.2% could lead to a bullish continuation for BTC.” “5.3% or more will most likely provide a minor shock and dampen current price action.”
with bitcoin price to reach Above $30,000 this week for the first time since June 2022, the top crypto is up more than 80% since December 31. As with many other cryptocurrencies, the price of bitcoin has risen since the beginning of this year despite the tough stance US regulators adopted following the collapse of FTX in late 2022.
Many market analysts believe that a break above $30,000 could open the door to a near-term test of around $32,500 in late May 2022, which would represent a further 10% gain in bitcoin price from current levels. may represent growth.
“Bitcoin has stopped reacting to bad news,” commented Nathan Batchelor, managing partner at data analysis platform Beyond Trader. “It’s a tell-tale sign of a strong buyers’ market.”