Bitcoin Bulls Rally as Coinbase Logs Second Largest Weekly Outflow
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Bitcoin bulls’ actions prompt responses as recent movements suggest a commitment to hodling amid price increases.
Bitcoin bulls foresee another price surge as funds flow out from cryptocurrency exchanges to other custodians, indicating an upward market trend as numerous investors seek to capitalize on accumulated gains in recent months.
Fresh market data from on-chain analytics firm CryptoQuant reveals significant outflows from digital asset exchange Coinbase this week, sparking discussions and new projections among crypto enthusiasts across social media platforms.
The initial transaction recorded 16,800 BTC exiting the exchange, followed by a second transaction totaling 17,000 BTC.
Bitcoin Price Gains Momentum as Outflows Continue
Analysts Burakkesmeci suggest the outflows may signal institutional purchases or could be earmarked for spot Bitcoin ETFs. Regardless, many crypto users hint at a bullish trend in the Bitcoin market.
Traditionally, when assets depart from a centralized crypto exchange, it indicates a bullish sentiment as those coins are less likely to be immediately sold.
Conversely, the influx of assets to exchanges signals an impending sale of the asset, typically occurring after periods of price increases to realize profits.
The surge in Bitcoin and other crypto assets has prompted investors and traders to take new positions, propelling coins to highs not seen in years.
Bitcoin surged above $70,000 before experiencing a minor correction, mirroring a similar rise in altcoins and the memecoin market.
Halving Spurs Further Movement
Numerous market observers attribute the increased activity to the imminent halving, which will reduce the reward for mining the asset.
While generally viewed as a bullish development, the weeks preceding the halving witness some miners hedging their assets to adjust their positions. Particularly, miners aim to enhance production capacity and scramble for new hardware.
In a related development, reports indicate a flow of $1.4 billion worth of USDC to Coinbase, suggesting buying pressure as stablecoins can be utilized to acquire other cryptocurrency assets.
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