Few Bitcoin holders are shifting their coins away from centralized cryptocurrency exchanges like Binance and Coinbase, according to recent data from CryptoQuant on August 7. This finding is true despite the fact that BTC prices have risen recently and are currently hovering just below the psychological threshold of $30,000.

More Bitcoin Held in Exchanges

Although prices were considerably higher, trading at over $28,000 as of July 28, there were 30,663 addresses withdrawing coins from exchanges, up from about $25,000 reported on June 14, when 39,311 addresses transferred coins. BTC was removed from exchanges on April 14 by 132,237 addresses at a price of about $30,000.

If prices are rising, the decline in the number of exchange addresses moving funds to external, frequently non-custodial wallets may be cause for concern.

Optimism Abound

The larger Bitcoin community is nonetheless upbeat about the coin’s future prospects despite this development. The fact that organizations like the Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC) have recently classified Bitcoin as a commodity liable to capital gains tax is a contributing factor in this confidence.

See also  ApeCoin [APE] will face lesser intense price swings if this cohort...

This optimistic attitude toward the most valuable coin in the world has led to the development of advanced derivatives, such as the spot Bitcoin Exchange-Traded Fund (ETF) that BlackRock plans to create (if permitted). In Canada and other countries across the world, sophisticated Bitcoin trading solutions are already operational.

According to researchers at Bloomberg Intelligence, there is a 65% chance that the SEC will approve a Bitcoin ETF. The gain is partially attributable to positive developments, such as remarks made about Bitcoin by SEC Chair Gary Gensler, the regulator’s alleged insistence that BTC is the only commodity before Coinbase was sued, and the agency’s acceptance of a re-filing from BlackRock’s ETF.

The planned halving of Bitcoin in 2024 may be a positive thing, but according to Bloomberg experts, the anticipated increase has already been “priced in” based on “previous cycles.” Analysts predict that BTC may increase to $50,000 by April 2024 based on how prices have been behaving over the past several months.

Share.

Leave a Reply