Bitcoin Still Has A long Way To Go In Rally, BoA Analysts Reveals
The recent rise in Bitcoin’s price has been largely attributed to a variety of factors, such as the banking crisis, the dollar’s fall from dominance, and institutional adoption. However, recent data from Bank of America (BoA) analysts suggest that this increase may just be starting as there is still gas left for more rallies.
The analyst reveals a growing trend of investors taking their assets off exchanges and moving them to personal wallets, which is an indication of a bullish long-term outlook for the cryptocurrency, as well as room for more rallies.
Bitcoin still has gas for more rally
Despite Bitcoin recently hitting a major high of $30,000 by more than 80% since the start of the year, analysts at BoA believe that the asset could still hit another major high sooner rather than later.
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according to a observation by Bank of America strategists Alkesh Shah and Andrew Moss, $368 million worth of BTC was sent to personal wallets in the week to April 4, coinciding with the second-largest net outflow of BTC from cryptocurrency exchanges this year.
The report notes that the trend of moving tokens from exchanges to personal wallets basically suggests that investors are looking to hold them for the longer term, indicating a decrease in selling pressure.
Investors transfer tokens from exchange wallets to their personal wallets when they intend to hold (or HODL) them, indicating a possible decrease in selling pressure.
According to the report, concerns over regulatory crackdowns in the US may have played a role in Bitcoin’s recent exit from exchanges. Major cryptocurrency companies in the US such as Coinbase and Binance have faced increased scrutiny from regulators, prompting some investors to withdraw their assets from these platforms.
Despite these regulatory concerns, the general trend of investors moving Bitcoin from exchanges to personal wallets suggests a bullish outlook for the cryptocurrency. This trend indicates that investors are confident in the long-term potential of BTC and are not concerned about short-term price fluctuations.
While some analysts have warned of a possible near-term price correction, the growing trend of investors moving Bitcoin into personal wallets suggests that the cryptocurrency still has a long way to go on its rally.
Are most BTC for the long term?
Supporting BoA analysts, Glassnode data recently revealed that many Bitcoin holders have chosen to leave their BTC dormant in their wallet, indicating their willingness to want to hold their Bitcoin asset for the long term.
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According to Glassnode, there are now more BTC that is inactive than there is Bitcoin available for purchase on exchanges. Nearly 29% of all BTC in circulation is not moved in the last 5 yearsthat’s over $200 billion in market cap that hasn’t changed in half a decade.
Notably, Bitcoin started ignoring the negative news in the crypto industry and continued to move in an uptrend. Over the past 7 days, the asset has surged by over 7%, bringing the global market cap to nearly $1.3 trillion.
Bitcoin has a trading price of $30,254, at the time of this writing.
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