Bitcoin’s recent surge in price has been widely attributed to a variety of factors, such as the banking crisis, the dollar’s fall in dominance, and institutional adoption. However, recent data from Bank of America (BoA) analysts suggests that this surge might just be starting as there is still gas for more rallies.
The analyst reveals a growing trend of investors withdrawing their assets from exchanges and moving them to personal wallets, which is an indication of a long-term bullish outlook for the cryptocurrency as well as room for more rallies.
Bitcoin Still Has Gas For More Rally
Despite Bitcoin recently tapping into a major high of $30,000 up by over 80% since the start of the year, the BoA analysts believe the asset could still hit another major high sooner or later.
Related Reading: Bitcoin Investors Beware: Crypto Market Crash Imminent, According To This Finance Expert
According to a note from Bank of America strategists Alkesh Shah and Andrew Moss, an amount of $368 million BTC was sent to personal wallets in the week through April 4, coinciding with the second-largest net BTC outflow from crypto 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 long term, indicating a decrease in selling pressure.
The analysts stated:
Investors transfer tokens from exchange wallets to their personal wallets when they intend to hold them (or HODL), indicating a potential decrease in sell pressure.
According to the report, concerns about regulatory crackdowns in the US may have played a role in the recent outflow of Bitcoin from exchanges. Major crypto firms in the US, such
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Author: Samuel Edyme
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