With recent rebounds in the cryptocurrency market, Bitcoin has regained its former glory, reminiscent of its 2021 peak. Alongside Bitcoin, a substantial number of altcoins have achieved their highest levels since 2022, with expectations of further growth. While prices are soaring, industry specialists are focused on other indicators of market strength beyond just value.
Crypto Analysts Eye Massive Bitcoin Withdrawals
CryptoSlate analyst James Van Straten has highlighted a significant trend of Bitcoin leaving exchanges, amounting to billions of dollars. Although the influx of new investors has yet to surge, the dwindling reserves on exchanges suggest a different market dynamic. On a single day, March 1st, Bitcoin withdrawals were valued at approximately $2 billion, marking one of the most substantial outflow events in half a decade.
Exchange outflows are not exclusive to Coinbase, indicating a widespread increase in demand. Specifically, Binance experienced outflows close to $400 million, showing a keen interest in cryptocurrencies unrelated to Exchange-Traded Funds (ETFs).
The overall Bitcoin reserves on major exchanges have fallen to a low not seen since March 2018, when Bitcoin’s price hovered around $8,000, now resting at a staggering $142.5 billion.
New Investors Showing Interest in Bitcoin
Contributor to CryptoQuant, known as Crypto Dan, has pointed out shifts in unspent transaction output (UTXO) data, revealing an increase in “older” Bitcoin becoming active after six months or more of dormancy. This activity suggests a rise in the number of new Bitcoin investors and the potential for a substantial uptick in individual investor participation, which could lead to a genuine bull market, as desired by enthusiasts.