2 November 2024
Bitcoin Price May Soon Bounce To New All Time High
This week Bitcoin surged to $44,000 amid increased institutional trading and as a large number of tokens were moved off exchanges. The data indicate that these outflows give more strength to the world’s largest Cryptocurrency.
Last seven days, Bitcoin has recorded 7% gains, with its latest bounce coming just after the U.S. Federal Reserve hiked interest rates as expected. The majority of this strength has been contributed by institutional trading, with growing interest from major Wall Street firms.
The leading Cryptocurrency has also avoided the near-term weakness witnessed by stocks after the Fed said it would be more aggressive in its moves to curb inflation. On Wednesday, BTC was trading around $42,000.
As per Intotheblock data, BTC had its largest exchange outflow in over one month on Monday. Around 15,000 units were removed from the exchanges. Looking at history, the large outflows have led to a significant jump in the BTC price.
Back in January, over 14,000 tokens were moved off exchanges and it led to an increase in the price of Bitcoin by 20% in a week.
The fact that Bitcoin price could jump is supported by the lower token supply usually makes for higher prices. With the massive amount of Bitcoin taken off from the exchanges, its supply will come down.
Disclaimer: The author’s thoughts and comments are solely for educational reasons and informative purposes only. They do not represent financial, investment, or other advice.
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