Bitcoin is Ready for Another Leg Up as Exchange Outflows Increase
- Bitcoin could be gearing up for another leg up due to investors and traders moving their BTC out of exchanges
- Less Bitcoin is stored on Coinbase than during the 2017 bull cycle
- According to Bloomberg, Bitcoin is in the early days of adoption and primed for further growth
Bitcoin could be gearing up for another bullish move based on the amount of BTC leaving crypto exchanges.
The potential for such a scenario was highlighted by the CEO of CryptoQuant, Ki Young Ju, who also explained that the outflow of Bitcoin out of exchanges, was weakening selling pressure in the crypto markets. Mr. Ju shared his analysis through the following statement and accompanying chart.
BTC is ready to get another leg up. A significant amount of Bitcoins has flowed out across all exchanges, weakening selling pressure.
Fewer Bitcoins Are Held on Coinbase Than in December 2017
The reduction in the amount of Bitcoin held on crypto exchanges was also pointed out by crypto community member @ThatsCheckNate who identified that the amount of Bitcoin being held on Coinbase, is currently lower than the amount during the peak of the 2017 bull cycle. His analysis of the Bitcoin balances on Coinbase can be seen in the screenshot below.
Bitcoin is in the Early Stages of Adoption
In addition, the team at Bloomberg has released their monthly Crypto Outlook report in which they conclude that Bitcoin has one advantage over other assets in the form of ‘timing’ within the current global economic environment that is signaling possible inflation.
According to the report, Bitcoin is in the first stages of adoption and primed for further growth as explained below.
Bitcoin has a unique advantage of good timing. Diminishing supply juxtaposed with historically low interest rates and the substantial amount of money being pumped into the system form a solid foundation for price appreciation of the firstborn crypto, if the rules of economics apply.
Adoption is in the very early days, yet it’s the key and Bitcoin appears to have won the race, as evidenced by Tesla allocating a portion of its equity wealth to the digital asset.