Bitcoin (BTC), a largest cryptocurrency, demonstrates signs of bullish potential in the final days of 2024. It sees lowest number of depositors in more than eight years, while investors continue sending stablecoins to exchanges, CryptoQuant data says.
Most bullish since 2016? Bitcoin (BTC) leaving centralized exchanges
Bitcoin (BTC) has registered a drop in daily deposits unseen since 2016, CryptoQuant's community author who goes by @AxelAdlerJr shared in his recent Quicktake post. This means that fewer and fewer crypto owners are interested in moving their BTC to centralized exchanges.
Bitcoin is leaving exchanges“Drop in daily deposits to exchanges to a level not seen since 2016 suggests a large-scale trend of holding Bitcoin in personal wallets, while the Netflow-to-Reserve Ratio confirms a continued outflow of coins.” – By @AxelAdlerJr Link 👇… pic.twitter.com/uU3wBf27oA
— CryptoQuant.com (@cryptoquant_com) December 30, 2024
This, in turn, is a signal of accumulation in non-custodial wallets. Typically, the trends spell lower interest in the immediate selling of Bitcoin (BTC), which is a bullish indicator in the midterm.
Also, the Netflow-to-Reserve Ratio confirms a continued outflow of coins. The indicator demonstrates the relationship between net inflows and outflows to centralized exchanges and their total reserves. The metric reached its lowest point since January 2023.
As such, the analyst demonstrates moderate optimism about the impact of both catalysts on Bitcoin's (BTC) behavior in early 2025:
The drop in daily deposits to exchanges to a level not seen since 2016 suggests a large-scale trend of holding Bitcoin in personal wallets, while the Netflow-to-Reserve Ratio confirms a continued outflow of coins. Taken together, these signals set the stage for potentially more robust price movements in the future.
As of press time, Bitcoin (BTC) is attempting to stay above $94,000, up by 0.5% in the last 24 hours on surging trading volume.
Buying pressure increases as stablecoin reserves hit ATH
The aggressive accumulation of stablecoins on centralized crypto exchanges is another powerful indicator of market optimism. In less than year and a half, stablecoin reserves of Binance (BNB) surged from $7 billion to $31 billion.
Binance hit its highest stablecoin reserve“An increase in stablecoin reserves typically signals that the buying pressure is growing... it suggests that investors remain actively positioned in the market” – By @Darkfost_Coc Full post 👇https://t.co/HOtDIRw50x pic.twitter.com/OT1aFZMBKm
— CryptoQuant.com (@cryptoquant_com) December 31, 2024
This shows that even sellers decided to park their finances in stablecoins instead of moving the value outside crypto or migrating from BTC to altcoins.
By this indicator, Binance (BNB), the world's most popular exchange by trading volume and user count, hit an all-time high, smashing through the 2023 record.
Buying pressure on Bitcoin (BTC) is still far from being exhausted, CryptoQuant data shows.
