- As of July 28, there were 30,663 addresses withdrawing cryptocurrencies from exchanges, but the prices were relatively higher and trading around $28,000.
- It is thought that when fewer people transfer their Bitcoins to decentralized wallets, it may indicate uncertainty about the upward trend.
- The Bitcoin community continues to have a positive outlook on the coin’s potential in the coming months. This optimism is partly due to the recent classifications by institutions such as the SEC and CFTC.
The latest data reveals that some Bitcoin investors are withdrawing their coins from exchanges like Binance and Coinbase; what does this mean?
Bitcoin Investors Are Withdrawing Their BTC from Exchanges
The latest data from CryptoQuant shows that very few Bitcoin holders are withdrawing their coins from centralized cryptocurrency exchanges like Binance and Coinbase. This observation holds true despite the recent increase in BTC prices and its approaching the psychological level of $30,000.
As of July 28, there were 30,663 addresses withdrawing cryptocurrencies from exchanges, but the prices were relatively higher and trading around $28,000. When BTC changed hands at around $30,000 on April 14, 132,237 addresses withdrew their coins from exchanges.
A decrease in the number of addresses transferring coins from exchanges to decentralized wallets can be a significant cause for concern when prices are rising.
This change also raises important questions about why more Bitcoin holders prefer not to keep their coins on exchanges. When fewer people transfer their Bitcoins to decentralized wallets, it is thought to indicate uncertainty about the upward trend. Therefore, they keep their coins on exchanges for quick access to USDT or traditional currencies (such as USD or Euro) if needed.
Positive Expectations for Bitcoin
Despite this change, the overall Bitcoin community continues to have a positive outlook on the coin’s potential in the coming months. This optimism is partly due to the recent classifications by institutions such as the U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). These institutions explicitly support classifying Bitcoin as a commodity subject to capital gains tax.
As other digital assets like ETH are not classified in this way, some Ethereum holders have doubts about whether U.S. regulators will classify the second most valuable coin as a security or not.
Advanced derivatives, such as a spot Bitcoin Exchange-Traded Fund (ETF) planned by BlackRock (if approved), are being developed. Bitcoin trading products are already active in Canada and other regions worldwide.
Bloomberg Intelligence analysts say the likelihood of a Bitcoin ETF being approved by the SEC is 65%. The increased probabilities are partly due to SEC Chairman Gary Gensler’s comments on Bitcoin, the regulator’s insistence that BTC is the only commodity before suing Coinbase, and the acceptance of BlackRock’s ETF reapplication.
While the upcoming halving of Bitcoin in 2024 may be good news, Bloomberg analysts note that the expected rise is “priced in” based on “previous cycles.” Looking at how prices have performed in the past few months, analysts believe BTC could rise to $50,000 by April 2024.
