In a recent surge, Bitcoin has reclaimed its former glory, reminiscent of its 2021 performance, while a significant number of altcoins have hit their previous year’s highs. Market experts weigh in on this trend, as not only prices are soaring but also massive withdrawals from crypto exchanges are being recorded, stirring the market’s dynamics.
Surge in Bitcoin Withdrawals from Exchanges
James Van Straten, an analyst at CryptoSlate, highlights an unprecedented movement of Bitcoin from exchanges, reaching billions in value. March 1st saw a staggering $2 billion in Bitcoin being pulled out from these platforms. On a particular Friday, the withdrawals surpassed $2.3 billion, marking one of the most substantial outflows in five years. These occurrences are not exclusive to Coinbase, as Binance also experienced around $400 million in withdrawals, demonstrating that the activity is not solely driven by ETF-related demand.
Rise in Active Crypto Participants
Crypto Dan, writing for CryptoQuant, examines the shift in Bitcoin’s unspent transaction output (UTXO) age bands, which track the duration of Bitcoin holdings. The reactivation of coins that had been dormant for six months or more has been a precursor to the increase of young Bitcoin investor wallets. This influx of new participants could signify the onset of a robust bull market, as more individual investors are anticipated to join the fray.
The total Bitcoin reserves on major cryptocurrency exchanges have plummeted to $142.5 billion, a level last observed in March 2018 when the price of Bitcoin was around $8,000. This decline in exchange reserves, coupled with the awakening of older coins and an influx of fresh investors, suggests a compelling shift in the cryptocurrency landscape.