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The recent bitcoin exchange outflow volume is at a record level that was never seen before as per the analytics platform reported
The Bitcoin and cryptocurrency market has seen a healthier movement in the past few days, especially in late March. Another positive impact started reflecting, which made it possible to think that maybe the market is up to take a bullish take from here. As per the blockchain data analytics platform, Glassnode reported, the exchange outflows aggregated for bitcoin have reached a critical level, and such a level is observed only on rare occasions.
The allover growth could result in forming a new bottom or resistance line for bitcoin. The flagship cryptocurrency’s volatility has been decreasing since the start of the year, trying to recover from the losses. The topmost digital asset has moved with fluctuations and ups and downs here and there, including a bullish week’s momentum in the last days of last month.
Such reasons would seem enough for bitcoin bulls to assume seeing a run-up towards the price point of $50K. Still, various factors exist that could delay the anticipated forward movement of digital assets. Several investors expect sidelines citing the Fed interest rate hikes, Russia-Ukraine war disturbance on the global economy, and gradual tightening of crypto policy by the European Union in the region.
Still, the data and reports have enough statistics material for bulls to keep their hopes high. As per the data report by Glassnode, outflows of bitcoin volume on aggregate exchanges have reached upto the mark of 96.2K BTC per month.
Glassnote considered this a rare event seen last at March-end of 2020. It stated that hitting outflow volume rate of this magnitude,96.2 BTC per month, by bitcoin exchanges has been seen on several occasions throughout history, which was last in March 2020 during the liquidity crisis.
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It’s worth noting that the level of outflow signifies correlation with forming of a price bottom as that saw the asset making significant gains ultimately in Q4 of 2020. It could be the same scenario this time, and it might be the time to play.
Further, several reports, analyses, and experts consider that digital assets are still undervalued and have the potential to reach significant heights. As bitcoin analyst and S2F creator PlanB earlier said that BTC is undervalued, he noted that it’s almost at a discount of 55% right now. He stated that the next halving of mining reward is almost close to being done, and sudden volatility in the market would be the factor for the same. It seems like the recent finding of Glassnode is somehow supporting the claims.
But some are still holding their horses for this year and telling others to do the same. For instance, CEO of Galaxy Investment Mike Novogratz recently said that investors should not expect high gains this year due to uncertainties created by regulatory surroundings and other situations developed in the markets.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
