The recent rise in the price of Bitcoin has been widely attributed to a variety of factors, including the banking crisis, falling dominance of the dollar, and institutional adoption. However, recent data from Bank of America (BoA) analysts suggests that this rise could be just beginning, as there is still fuel for more rallies.
The analyst reveals a growing trend of investors withdrawing their assets from exchanges and moving them into personal wallets, which is an indication of a long-term bullish outlook for the cryptocurrency, as well as room for more rallies.
Bitcoin still has gas for more rally
Despite Bitcoin recently reaching a major high of $30,000 up more than 80% since the start of the year, BoA analysts believe the asset could still hit another major high sooner or later.
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according to a note from Bank of America strategists Alkesh Shah and Andrew Moss, $368 million worth of BTC was sent to personal wallets in the week ending April 4, coinciding with the second-largest net outflow of BTC from cryptocurrency exchanges this year .
The report notes that the trend of moving tokens from exchanges to personal wallets basically suggests that investors are looking to hold them for the long term, signaling a decrease in selling pressure.
The analysts stated:
Investors transfer tokens from exchange wallets to their personal wallets when they intend to hold (or HODL) them, signaling a potential decrease in selling pressure.
According to the report, concerns about regulatory crackdowns in the US may have played a role in Bitcoin’s recent exit from exchanges. Major US crypto companies such as Coinbase and Binance have faced increased scrutiny from regulators, prompting some investors to withdraw their assets from these platforms.
Despite these regulatory concerns, the general trend of investors moving Bitcoin from exchanges to personal wallets suggests a bullish outlook for the cryptocurrency. This trend indicates that investors are confident in the long-term potential of BTC and are not worried about short-term price fluctuations.
While some analysts have warned of a possible price correction in the short term, the increasing trend of investors moving Bitcoin into personal wallets suggests that the cryptocurrency still has a long way to go in its recovery.
Is most BTC long term?
Backing up BoA analysts, data from Glassnode recently revealed that many Bitcoin holders have chosen to leave their BTC dormant in their wallet, indicating their willingness to want to hold their Bitcoin asset for the long term.
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According to Glassnode, there are now more BTC that is inactive that Bitcoin is available to buy on exchanges. Almost 29% of all BTC in circulation have not moved in the last 5 yearswhich has over $200 billion in market capitalization that hasn’t moved in half a decade.
Notably, Bitcoin has started to ignore negative news in the crypto industry and has continued to move in an uptrend. In the last 7 days, the asset is up more than 7%, bringing the global market capitalization to almost $1.3 trillion.
Bitcoin has a trading price of $30,254, at the time of writing.
Featured Image from Shutterstock, Chart from TradingView
